By Mohamed Alaa Eldin
Global Telecom Holding (GTH) said Sunday that it has sold its 51% stake in Algerian company Djezzy to Omnium Telecom and Algerian National Investment Fund at a price of $2.6bn.
GTH entered into a shareholders’ agreement with the fund, with the agreement controlling relations between them as two shareholders in Omnium to complete the sale process.
Algerian company Omnium Telecom will continue to control Global Telecom’s dealings finance-wise.
Jo Lunder, Managing director of VimpelCom said: “We have entered into a long-term relationship with the fund through creating an ownership structure for Omnium Telecom, with a public-private partnership between both the public and private sector. This structure will make Omnium Telecom one of the pioneers in Algeria, and will allow it to offer high-quality mobile services and the best digital services to customers.”
The agreement, on a group level, generates a significant cash flow for Global Telecom and Vimpelcom, allowing them to pay their debts. All importing restrictions and foreign currency exchange imposed by Bank of Algeria on Omnium Telecom on 15 April 2010 were lifted. This came straight after Omnium Telecom paid a fine worth DA 99bn (equivalent to $1.1bn) to the Algerian Ministry of Finance.