Yazid Benmouhoub, CEO of the Algerian Stock Exchange (Bourse d’Algerie or SGBV), has announced that domestic cellco Orascom Telecom Algeria (OTA), which operates under the Djezzy GSM brand, will be listed on the stock market in the near future.
The majority stake (51%) in the operator was acquired by state-owned Fonds National d’Investissement (FNI) in April 2014, after a lengthy negotiation process between the government and Djezzy’s parent company Global Telecom Holding (GTH, itself owned by Vimpelcom of Russia). In a press conference held on 30 April, Benmouhoub commented on the acquisition by saying that ‘the transaction will contribute to financial market development in Algeria.’ The executive added: ‘FNI is an investment fund, so is the capital of any company in which it is a shareholder… This means that eventually we will surely have the operator Djezzy on the Algierian Stock Exchange.’
As previously reported by TeleGeography’s CommsUpdate, the Algerian government acquired a 51% stake in Djezzy GSM for a total consideration of USD2.643 billion. Following the transaction, which is expected to be finalised by end-2014, Vimpelcom’s shareholding in OTA will decrease to 46%; Cevital, which owns 3% of the operator, however has agreed to sell its share to Vimpelcom for USD178 million, bringing the Russian-backed company’s holding to 49% of Djezzy GSM. Vimpelcom/GTH will retain management control of the Algerian cellco, and will continue to consolidate the operator’s results under International Financial Reporting Standards (IFRS).