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MTN offers $7.8bn for Orascom Algeria
03 June 2010
Orascom chief Naguib Sawiris is negotiating to sell its Algerian subsidiary to South Africa-based MTN for $7.8bn
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Orascom
Algeria
MTN
Naguib Sawiris
Djezzy
South Africa’s MTN has made an offer for Orascom Telecom’s Algerian subsidiary. Orascom chairman, Naguib Sawiris, said the company had received a $7.8 billion offer.
The Egyptian mobile operator had earlier said it would enter negotiations to sell Djezzy to the Algerian government, after being pressurised by Algerian officials.
The Algerian government had said the state had the right to bid on the division before any foreign buyer.
Djezzy was the main element in a potential broader deal that would have made MTN the third-largest mobile company in the world, if all of Orascom’s assets were included.
Orascom is also planning to enter the Syrian market. The Cairo-based company would have preferred to remain in Algeria, but was under pressure to negotiate its sale. GTB