Vimpelcom resolves Algeria row with $2.6 bn stake sale « ASHARQ AL-AWSAT

Vimpelcom resolves Algeria row with $2.6 bn stake sale « ASHARQ AL-AWSAT:



"Russia’s Vimpelcom has resolved a long-running dispute with the Algerian government by selling it a majority stake in the country’s biggest telecoms operator for 2.6 billion US dollars, while it will keep control and slash debt.



Orascom Telecom Algeria, also known as Djezzy, is a prized asset, which Vimpelcom bought in 2010 from Egyptian tycoon Naguib Sawiris as part of a more than 6 billion-dollar deal as it aimed to diversify outside of Russia.



Algeria that year made moves to nationalize Djezzy, hitting the business with back tax claims and restrictions on imports and foreign exchange transactions, creating uncertainty that has weighed on Vimpelcom’s shares.



On Friday, Russia’s third-largest mobile operator said that Global Telecom Holding (GTH), its 51.9 percent-owned subsidiary, had signed an agreement to sell a 51 percent stake in Djezzy to the Algerian National Investment Fund (FNI) for 2.6 billion dollars."



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