VimpelCom Sell Djezzy for US$2.6 billion
Published By : 02 Feb 2015 | Published By : QYRESEARCH
VimpelCom Ltd. has decided to shell out a bigger chunk of stake in Djezzy, its Algerian unit, to the government of North African countries, presenting it with US$4 billion in cash and dividends, which will permit it to cut the debt, it owes.
VimpelCom, which is co-owned by Russian billionaire, Mr. Mikhail Fridman and Telenor ASA of Norway, decided to sell 51% of Orascom Telecom Algerie SpA, also known as Djezzy, to the Algerian National Investment Fund for around US$2.64 billion, VimpelCom stated today in a press release. Djezzy will also shell out a US$1.86 billion dividend to Global Telecom that holds SAE unit of VimpelCom before the transaction completes.
The company, which produces phones, is determined to lessen US$27.5 billion of debt built up partially from acquisitions of assets in Algeria, Italy, and Asia from Mr. Naguib Sawiris, an Egyptian billionaire. It also finishes an ownership clash, in which the government of Algeria prohibited Djezzy from giving dividends to its parent organization and made tax claims on the unit.
Mr. Jo Lunder, Chief Executive Officer of VimpelCom stated that it is a milestone for the organization, which will end a three-year-long clash in Algeria. He also stated that this deal will disburse US$4 billion of cash for VimpelCom after tax.
VimpelCom will have the functional control of Djezzy and will continue to consolidate the asset on its balance sheet. The unit thinks to expand a 3G mobile network to hit growth in Algeria, where it has a base of 17.6 million users.