Nedjma and Etisalat may buy Djezzy

A fierce competition has been triggered between world telecommunication corporations as an Algerian official said his government did not want Egypt’s Orascom in Algeria anymore.

• Emirates Telecommunications Corp., or Etisalat, Kuwaiti telecom Zain, Orascom’s rivals in Algeria, Nedjma and Mobilis want to buy its stake in Algeria.
• Earlier on Thursday, Etisalat’s chairman Mohammad Omran told Reuters the corporation would enter the Algerian market if the right opportunity comes up.
• He said there were six markets in the Middle East and North Africa which Etisalat was investigating for both acquisitions or new licenses within markets that are underserved by phone services.
• He was quoted by UAE daily The National as saying the firm was interested in buying Djezzy, the Algerian unit of Egypt’s Orascom Telecom.
• Etisalat’s Vice-Chairman Ahmed Ben Ali told the Middle East newspaper “Algeria is a promising market and we have the intention to buy Djezzy but it depends on the government’s decision.”
• Cairo-based Belton Financial investment bank said Nedjma is the first candidate to take the place of Orascom in Algeria followed by Mobilis. It estimates Djezzy’s value at $6.7 billion. That means 51 percent of Orascom’s value.
• The bank expressed fears that the government forces Orascom to sell at a lower price or to its favoured buyer.