“Open scenario unfolding between France Telecom and Orascom for the sale of Djezzy”

Reliable sources say that close contacts are underway between France Telecom and Orascom for the acquisition by the French telecommunications company of the Orascom-owned telephone operator Djezzy as part of a bail – out plan for the benefit of debt – ridden Orascom Telecom Algeria.  

• As a matter of fact, the Orascom Company is said to be now prone to sell its Djezzy group on account of its huge financial debts amounting to about 2.5 billion dollars.
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• Debt-plagued Orascom is also compelled to pay off an amount of over 596 million dollars to the Algerian tax services by virtue of its tax adjustment for the years 2005, 2006 and 2007, according to finance ministry sources.
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• Otherwise the Egyptian company Orascom will not be allowed by the relevant Algerian authorities to transfer its financial spin-offs overseas.
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• That’s why the Orascom Telecom holding company is eagerly seeking a way out of its current financial quandary by notably contemplating to sell off Djezzy in the hope of keeping afloat with the injection into its coffers of a significant fresh financial package.
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• The tax services have estimated the revenues of Orascom Telecom Algeria over the past 3 years at 5.25 billion dollars, against 4.42 billion dollars according to the Egyptian company’s accounts.
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