ALGIERS: The Algerian government’s valuation of Orascom Telecom’s local mobile phone unit has been delayed because of a disagreement about disclosing company data, two telecoms sector sources told Reuters.
The valuation is the first step to the nationalization of the Djezzy unit, the subject of a protracted row which has knocked the share price of Orascom whose parent company Wind has been sold to Russia’s Vimpelcom. Algeria’s government hired law firm Shearman & Sterling LLP in January to conduct the valuation and instructed it to complete the work by the end of May.
"The valuation has not been done yet because Djezzy refused to allow Shearman access to its database," an Algerian telecoms sector source familiar with the Djezzy case told Reuters.
"Djezzy has demanded that Shearman sign a non-disclosure document," said the source, who spoke on condition of anonymity.
"Sherman should have finished the job, but it was unable to complete it because of the non-disclosure condition made by Djezzy."
The account was confirmed by a senior Algerian government official dealing with the telecoms sector.
"We still don’t have our valuation, this is sure. I am not sure about why but I think it is because Dzezzy did not allow Shearman to get access to information," said the official, who also spoke on condition of anonymity.
Orascom Telecom, contacted at its headquarters in Cairo, declined to comment.
An employee in Shearman & Sterling’s Paris office told Reuters: "At this stage, there is no blockage. There has been a delay, that is true, but I think that we are in a normal process and we continue to negotiate at the moment with Djezzy about a confidentiality agreement."
A spokesman for the Algerian finance ministry, which hired the law firm and is overseeing the valuation, said the ministry did not wish to comment. –Additional reporting by Tom Pfeiffer in Cairo
