The Government to Acquire 51% of Djezzy Stake

Minister of Post, Information Technologies and Communication, Moussa Benhamadi, said Sunda that the government has decided to take over the majority of 51 percent in the stake of Orascom’s Djezzy mobile phone operator.

Mr Moussa Benhamadi told reporters at the sidelines of the work visit he paid to the province of El-Tarf that “the government will take the majority of 51 percent in the stake of Djezzy, as the two parties have signed agreement in conformity with the Budget Law,” without however providing further details. 

Earlier, in December, Minister of Finance, Karim Djoudi, stated that the acquisition by Algeria of OTA, a subsidiary of Egypt OTH (Orascom Telecom Holding) taken over by Russia Vimpelcom, was supposed to be concluded later 2011, after the signature of confidentiality agreement between the two parties, and later on, an intention protocol will be sealed. 

Orascom Telecom was forced to agree to talks on Djezzy’s nationalisation after it was hit with millions of dollars in back-tax demands from Algeria and prevented from moving the unit’s cash abroad.

Talks about the nationalisation were stalled because of a dispute between the government and Djezzy’s owners about how the unit is to be valued.

Djoudi said issue had been resolved. “We have opened the data room which gives us access to all Djezzy’s details,” he said.