Orascom Telecom: Negotiations with Algerian government to begin after Ramadan

Negotiations between Orascom Telecom Holding (OTH) and Algerian government on the sale of Djezzy could not begin until a few weeks. 

• On Sunday evening, in a statement on the satellite channel Al Arabia, the CEO of OTH, Khaled Bichara, said the current schedule does not sat a date for starting negotiations with the Algerian government. In allusion to the holiday period and the month of Ramadan, two events that solidify the political and economic life in Algeria and in many Muslim countries.
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• “It is possible that the summer season and the month of Ramadan would bring a little delay to the launch of negotiations, but we intend to begin them as soon as possible”, he said.
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•  For him there are two possible solutions to the problem of Orascom Telecom in Algeria; “Algerian government should buy the company and its assets or keep the company working in an easier environment”, he added.
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• “Prohibition of any transfer could affect the company’s network and installations”, he asserted.
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• Since last April, Djezzy prohibited import by the Bank of Algeria.
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• OTH and Algerian government do not agree on the method of valuing Djezzy. Algerian government wants an independent expert in order to determine the value of the mobile operator. However, Orascom Telecom wants to take as reference the failed transaction with South Africa’s MTN.
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• According to banking sources, Djezzy has been valued at 7.8 billion dollars during these negotiations. But Algerian government had vetoed by waving its right of preemption of the state established by the Complementary Financial Law (CFL) 2009.