The Algerian government’s acquisition of a majority stake in mobile operator Djezzy looks set to go ahead after an independent financial adviser deemed the agreed price for the stake to be ‘fair’.
In fact, financial adviser HC valued the stake – currently held by VimpelCom subsidiary GTH (Global Telecom Holding) - at $2.54 billion. This is 4% lower than the price previously agreed between VimpelCom and the Algerian government ($2.64 billion).
In 2011, VimpelCom obtained Djezzy when it acquired Orascom Telecom’s assets for $6 billion. The Russian firm has been trying to sell a 51% stake in the operator to the Algerian government since January 2012, but the deal was shaken when Djezzy received a $1.3 billion fine for infringing foreign currency regulations in March of that year.
The final deal will see GTH retaining a 49% stake in Djezzy as well as holding on to operational control. The Algerian operator had 17.7 million connections at the end of Q2 2014, and offers 3G services in 7 of the country’s provinces.