Government close to finalising valuation of Djezzy stake

7 Mar 2012

The Algerian government has revealed that it is hoping to have fixed a valuation on the country’s largest mobile operator Orascom Telecom Algeria (Djezzy) by the end of March. The government has agreed a deal with Djezzy shareholder Vimpelcom to buy a 51% stake in the operator. Vimpelcom is believed to be seeking to retain management control of the cellco, as well as continuing to consolidate the operator under International Financial Reporting Standards (IFRS). While Vimpelcom has in the past placed a valuation on Djezzy of around USD7.8 billion, the government is thought to be looking at figure of nearer USD2-3 billion. According to TeleGeography’s GlobalComms Database, Djezzy had a 48% share of Algeria’s cellular market at the end of 2011.

Algeria, Optimum Telecom Algerie (Djezzy), VEON