ICEC

Djezzy’s Value Reaches $6.5 billion

The Algerian government advisor on the local network operator, Djezzy, put the communication company’s value at $6.5 billion, according to Algerian media quoting of Post and Telecommunications Moussa Bin Hamadi.

Algeria is in talks to buy a stake in Djezzy from the Russian company that merged with Orascom Telecom last year. It is still discussing a purchase price for the 51 % stake. Hamadi added that negotiations between VimpelCom are still ongoing.

The valuation is the latest episode in the Djezzy saga between the Algerian authorities and Orascom Telecom, ignited by violence following a soccer match between Egypt and Algeria in 2009.

Last week, Vimplecom said it might seek international arbitration especially after an Algerian court fined Djezzy about $1.3 billion for violating foreign-exchange, as Al Ahram Weekly stated.

Last week OT shares plunged by 9.5 % to LE3.44, its largest daily decline since November 2008, on the back of statements by Algerian Finance Minister Karim Djoudi, who said that the negotiations might take months yet before completion.

He added there is a “big disparity” between the price the government is willing to pay and that being sought by the seller.

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