VimpelCom Ltd. and its subsidiary Global Telecom Holding have sold 51% stake Algeria’s Omnium Telecom Algeria SpA (formerly Orascom Telecom Algerie SpA, “OTA” or “Djezzy”) to the Algerian National Investment Fund, Fonds National d’Investissement for USD 2.6 billion.
According to the two, GTH will continue to exercise operational control over OTA and, as a result, both GTH and VimpelCom will continue to fully consolidate OTA.
Jo Lunder, Chief Executive Officer of VimpelCom, commented: “Today, we have entered into a long-term relationship with the Algerian National Fund, creating a private-public ownership structure for Djezzy. With this new ownership structure, Djezzy is positioned better than ever to lead the way in Algeria, offering customers high quality mobile services and the best digital experience. The deal, on a group level, also releases significant cash amounts to GTH and VimpelCom to pay down gross debt.”
In October, VimpleCom through Global Telecom Holding S.A.E. offloaded Telecel Globe Limited (“TG”) which had stakes in U-COM in Burundi and Telecel CAR in Central African Republic. The company has sold its 100% stake for a reported USD 65 million.