Vimpelcom signs MoU over sale of OTA

9 Jan 2012

Vimpelcom and Algeria’s Ministry of Finance have signed a non-binding Memorandum of Understanding (MoU) to explore the sale of a majority stake in Orascom Telecom Algerie (OTA) by the Russian company to the state. The cellco – currently 96.81% owned by Orascom Telecom Holding (OTH) which in turn is 51.7% owned by Vimpelcom – has been the subject of an ownership dispute ever since the Algerian government expressed a desire to nationalise the company, despite Vimpelcom’s acquisition of OTH’s assets in early 2011. The terms and conditions of the sale are yet to be finalised, but Vimpelcom is believed to be seeking to retain management control over OTA, as well as permission to continue to consolidate the operator under International Financial Reporting Standards (IFRS).

Algeria, Global Telecom Holding (GTH, formerly OTH), Optimum Telecom Algerie (Djezzy), VEON