Investors are whetting their appetites at the possibility of Egyptian telecommunications company Orascom’s Djezzy unit being available for purchase. That optimism continued on Monday and Tuesday in New York, as Russia’s second largest mobile operator Vimpelcom – which purchased Orascom last year – appears to have reached a deal with the Algerian government to seal its stake in the local unit.
“It is very exciting to watch both here in Algeria and in the US, because we know that this could be a huge telecom deal in the waiting,” Sami ben Abdullah, a securities analyst in the Algerian capital, told Bikyamasr.com.
On Monday, the Russian company rose to its highest level in over one month on the New York exchange on the heels of the announcement that Algiers and Vimpelcom may have agreed to initial terms for the sale of the Djezzy unit, after months of wrangling with Orascom over back taxes.
“It is a good thing that they have a deal because it means we can start to really look for investment in the Algerian market and boost the economy by giving some more competition and better customer service,” said Abdullah.
Jonathan Terry
