Slowly but surely, theAlgerian Statecompletes the process of taking over and controlling the mobile phone operator Djezzy. After a year of negotiations, it was at the beginning of August that Veon, a telecommunications company based in the Netherlands, announced the finalisation the sale to the National Investment Fund (FNI) of the 45.57% it still held in Omnium Télécom Algérie (OTA), Djezzy’s parent company, for the tidy sum of 682 million dollars. Less than a week later, Mahieddine Allouche, hitherto director of analysis and financial planning, was appointed interim general manager of the company in place of Frenchman Matthieu Galvani.
The operation is not a surprise in view of the agreement signed in 2015 between Veon and the Algerian authorities, which provided for this option. The purchase price was determined on the base of three ratings, the last of which was provided by US investment bank Houlihan Lokey.
The Algerian State buys 51% of Djezzy
The two main Algerian telecom operators under control
In total, Algiers will have spent more than 3 billion dollars to get their hands on 96,57 % of the capital of Djezzy, the rest belonging to the private Algerian group Cevital. The State recovers a mobile operator which has a total of 14.5 million customers, has 180 million dollars in its coffers, self-finances its investments (130 million dollars per year) and does not display any this.