VimpelCom holds Algerian sale talks

VimpelCom has begun talks to sell a majority stake in its subsidiary, Orascom Telecom Algerie (OTA), to the Algerian Government.

Any potential sale is dependent on the two parties agreeing on a suitable price for the share of the company and a series of other conditions.

The mobile service provider has remained flexible over scenarios for the acquisition to help ensure an agreement is reached between the two parties. However, a deal will only be reached subject to definitive documentation and if a price is agreed by both parties.

After agreeing to discuss a deal, the Algerian Ministry of Finance and VimpelCom will now sit down to determine the value of OTA. Any transaction can only go ahead subject to corporate approval from Orascom Telecom Holding (OTH), the majority stakeholder in OTA which VimpelCom purchased last year.

OTH officials have not yet been involved in discussions over the potential acquisition. VimpelCom owns 51.7 percent of OTH, which owns 96.81 percent of OTA.

More News

Gaming drives growth as app store revenues rise 40 percent in 2016 Gaming drives growth as app store revenues rise 40 percent in 2016 People are spending increasing amounts of time in and money on apps, according to new research. More detail
Ericsson, Ciena trial intercontinental data encryption with Telstra Ericsson, Ciena trial intercontinental data encryption with Telstra Ericsson has worked with Australian operator Telstra to showcase how data can be encrypted in transit at 10GBps. More detail
Telia Carrier heads east with new route Telia Carrier heads east with new route Telia’s wholesale arm has established a new cable route between Stockholm and St. Petersburg and upgraded submarine cables to boost its network capacity. More detail
European Communications launches digital transformation survey European Communications launches digital transformation survey European Communications’ latest quarterly survey delves into operators’ views about digital transformation. More detail
Profit-hungry Ekholm officially takes the helm at Ericsson Profit-hungry Ekholm officially takes the helm at Ericsson Börje Ekholm’s task of reviving Ericsson has begun as he starts his first day as President and CEO of the Sweden-based vendor. More detail
    

@eurocomms