Vimpelcom sells Djezzy stake to Omnium for $2.6bn

Vimpelcom sells Djezzy: Global Telecom Holding (GTH),  part of the Vimpelcom telecommunications conglomerate that generates almost 40% of its Russia, announced yesterday (February 1) that it had sold its  51% stake in the Algerian mobile network operator Djezzy to Omnium Telecom and the Algerian National Investment Fund for $2.6bn.

The sale is the culmination of a deal struck last April between Vimpelcom and Algeria to end a dispute over the country’s moves to nationalise the operator, under the terms of which GTH will continue to exercise operational control. “We have entered into a long-term relationship with the fund through creating a public-private partnership ownership structure for Omnium Telecom,” Vimpelcom MD Jo Lunde said. “This 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.”

On a group level, the cash generated from the sale should enable Global Telecom and Vimpelcom to pay of a large proportion of their debts.  Reuters, Daily News Egypt, Vedomosti