Algerian Government Unhappy with Cost of Buying 51% Stake in Local Mobile Network
Published on: 14th May 2013
Note -- this news article is more than a year old.
The Algerian government is seeking a fresh valuation on the local mobile network, Djezzy before it agrees to buy a 51% stake in the company.
The Algerian government has long wanted to buy the company, and settled on an agreement to take a controlling 51% stake in the company, and coincidentally dropping a number of lawsuits and regulatory barriers to the company.
"There will be a new valuation of Djezzy," a source, who asked not to be named told the Reuters news agency.
Djezzy was owned by Egypt's Orascom Telecom, before that company was bought by Russia's VimpelCom. The Russian purchase was itself nearly cancelled due to the Algerian dispute.
Just over a year ago, VimpelCom then agreed to sell a stake in the company to the Algerian government, but that was conditional on finding an acceptable price and satisfaction of other conditions.
The Algerian government had appointed law firm Shearman & Sterling to advise it on the valuation, but it seems that the government was unhappy with the figure they came up with.
Last November, Egypt's Naguib Sawiris launched a USD5 billion claim against the Algerian government for damages, claiming that repeated harassment cost the Algerian company significant losses prior to its sale to VimpelCom.
On the web: Reuters