Yesterday an Extraordinary General Meeting (EGM) of Vimpelcom subsidiary Global Telecom Holding (GTH) approved the sale of 51% of Algerian cellco Djezzy (Orascom Telecom Algerie) to the Algerian National Investment Fund (Fonds National d’Investissement [FNI]) for USD2.64 billion, in addition to deals associated with the transaction, reports Arab Finance. The GTH shareholders also approved the distribution of USD1.862 billion in dividends to Egypt-based GTH and its subsidiaries Moga Holdings Ltd and Oratel International Inc. The total dividends and sale proceeds to the Vimpelcom unit and subsidiaries are expected to be USD4 billion post taxes and settlement of all disputes between parties. The sale proceeds and dividends will be used for loan payments.
Russian-backed Vimpelcom and the Algerian government agreed in principle to the 51% stake deal in April to end years of arguments. Pending final approval of the transaction, Vimpelcom/GTH will retain a 46% minority stake and management control of Djezzy. Meanwhile, as previously reported by CommsUpdate, Cevital, which owns 3% of Djezzy, has agreed to sell its share to Vimpelcom for USD178 million, bringing the group’s holding in the Algerian cellco to 49%. Vimpelcom/GTH will continue to consolidate Djezzy’s results under International Financial Reporting Standards (IFRS).