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VimpelCom plans to sell Algeria unit
10 January 2012
Russian operator is in talks to sell majority stake in Djezzy to Algerian government
VimpelCom is looking to sell a majority stake in its Algerian mobile unit to the country’s government and is in discussion over the matter. With this sale the Russian operator intends to resolve a lengthy dispute over its operations in the country, which is becoming increasingly inclined towards nationalism.
VimpelCom has entered an agreement to explore the sale and the two sides will be looking at alternative acquisition possibilities. The parties will now start a process to decide the value of the deal.
The sale agreement will depend on the price that the government will pay for a controlling stake in VimpelCom’s Djezzy mobile unit. The firm acquired control of Djezzy as part of its $6.5 billion takeover of Egyptian operator Orascom.
The decision over the Djezzy’s, valued at over $4 billion by analysts, will be crucial as VimpelCom’s stakeholders would see it as an important step towards consolidation of the Russian firm’s business. GTB
Further reading from Global Telecoms Business:
Orascom to invest $70m in Zimbabwe unit 28 Nov 2011
VimpelCom appoints Telenor exec as COO and deputy CEO 21 Nov 2011
VimpelCom and MTS link for 4G infrastructure 28 Sep 2011
Orascom faces $596m Algerian tax bill 19 Nov 2009