Orascom solves snags in Djezzy and Tunisiana acquisitions

Egyptian operator Orascom Telecom has completed the acquisitions of further stakes in its Algerian and Tunisian subsidiaries, Orascom Telecom Algeria (Djezzy) and Orascom Telecom Tunisie (Tunisiana). Last month Orascom announced a deal with the Palestine Investment Fund (PIF) to buy the latter’s minority stakes in the companies. However, this deal was delayed by disagreements over a number of issues, including the providing of compensation to PIF for Djezzy dividends in its 2004 fiscal year. According to Orascom, these issues have now been resolved, allowing the telco to increase its direct and indirect stake in Djezzy from 62.14% to 85.21%, and in Tunisiana from 22.47% to 44.5%. Prior to the latest share transaction, Djezzy was already the largest single contributor to Orascom’s revenue base. In the year to 31 December 2004, Djezzy accounted for some 37% of its consolidated turnover and an even higher proportion (45%) of its consolidated EBITDA.