Wednesday 5 January 2011

Orascom Telecom Tunisiana Stake Sale May Affect Djezzy Price in Algeria - Bloomberg

Orascom Telecom Holding SAE said it concluded a deal selling its 50 percent stake in Orascom Telecom Tunisie to Qatar Telecom for $1.2 billion, a transaction that could affect the valuation of Orascom’s Algerian unit, Djezzy.

The price is 6.7 times Tunisiana’s earnings before interest, taxes, depreciation and amortization, Orascom said in a statement to the Cairo bourse. The Ebitda multiple is used to evaluate acquisitions in the telecommunications industry.

“This deal could affect the valuation for Djezzy,” Ahmed Adel, telecom analyst at Cairo-based Naeem Brokerage said by telephone. “Any adviser making the valuation for Djezzy should take into consideration the region’s recent deal multiples.”

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