Algeria's Ministry of Finance and VimpelCom have agreed a non-binding memorandum of understanding to explore the possible sale to the Algerian state of an interest in mobile operator Djezzy. The operator, known also as Orascom Telecom Algerie, has been the subject of dispute since the Algerian government signaled its interest in nationalising the company and Vimpelcom acquired most of the assets of Orascom Telecom. VimpelCom said it agreed to consider selling a majority stake in OTA, subject to an acceptable price and satisfaction of other conditions. The two sides have also agreed to consider alternative acquisition scenarios that could be mutually beneficial to both parties. The statement said any such transaction would be subject to, among other things, definitive documentation and mutual agreement on price. The ministry of finance and VimpelCom will undertake a process to agree on the valuation of OTA with the involvement of each party's financial advisors. The transaction will also require corporate approvals by Orascom Telecom Holding and VimpelCom, although OTH has not been party to the discussions regarding the MOU and the transaction. VimpelCom owns 51.7 percent of OT, which in turn owns 96.81 percent of OTA. Vimpelcom said that the aim is for governance and management control of Djezzy to be structured so that it can continue to consolidate the Algerian company.
