Algeria will buy Djezzy by 100 percent, says minister

Evaluation studies on Orascom Telecom Djezzy will be done before the end of 2010 so that Algeria will buy the company and talks will be stared later, post and communication technologies minister said Thursday.

• “Djezzy’s officials can not lodge a complaint at international organisations when the sale process is over. All the details will be discussed in advance. Investment law stipulates that the State has the right of first refusal,” Moussa Ben Hamadi told a news conference in Algiers.
• He excluded the possibility that foreign investors contribute in the company’s capital. “The Algerian State will buy the company by 100 percent and a joint ministerial commission will be set up to evaluate Orascom Telecom Djezzy. The process will continue until the end of 2010.”
• According to experts, the deal value is estimated between $2 and $3 billion.
• Earlier, Orascom Telecom said it would enter in negotiations with the Algerian government to sell Djezzy unit. Its investments in Algeria are estimated at more than $4 billion.
• The minister’s statement put an end to rumours about Orascom Telecom’s intention to sell Djezzy to foreign operators. Other sources said it started negotiating secretly with South African MTN to finish with sale procedures.