Algerian government is pushing the Russia-focused VimpelCom in a corner and wishes to buy controlling stake of 51 percent in VimpelCom’s Algerian Mobile business Djezzy. The government wants to nationalize Djezzy though Reuter reports that talks between both parties have not yet failed.
VimpelCom declined to comment on the matter and the Algerian Finance Minister Karim Djoudi, who has been handling the issue, also informed the reporters earlier that he would not comment until a deal was concluded.
Djezzy was taken over by VimpelCom in 2010 when it bought 51.92 percent stakes of the Egyptian telecom operator Orascom in a $6 billion deal. Djezzy is Orascom’s most lucrative asset.
A main point of conflict was the ban on foreign exchange transfers implemented by Bank of Algeria in 2010 on Orascom Telecom Algeria (Djezzy) which prevents it from buying equipment abroad.
Moreover, Djezzy was fined $1.3 billion by the government in March 2012 for violating the foreign currency regulations, souring the talks and prompting Vimpelcom to announce it would seek to international arbitration against Algeria.
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