The Algerian government was reported to confirm that it would purchase Egypt’s Orascom Telecom unit Djezzy, after over a year of wrangling between the North African country and the Egyptian telecommunications giant.
Earlier, the Egyptian company’s new owner Vimpelcom, had said it would attempt to work out a deal with the Algerian government over the financial situation, but those efforts appear to have failed.
According to the official Algeria Press Service, Prime Minister Ahmed Ouyahia confirmed that his government has decided to move to purchase the telecom operator.
The same report said that Djezzy is to have valuation completed in the near future and then Algeria will purchase the company.
Analysts in Algeria appear optimistic over the move, saying the government sees the importance of the telecom sector. While they hope that eventually, the move will also see the unit put up for private ownership, the analysts believe with the tension between Djezzy’s ownership and Algiers, it was the right move.
“We fully expected this and are certain that it will be a solid step in the right direction in order to improve the company’s performance and to ensure for customers that their services will remain high,” said one analyst.
Egypt’s OT and the Algerian government had been battling over ownership, but it appears the fight is coming to an end.
Jonathan Terry
