European Communications

Last update12:42:18 PM

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.