Sale puts an end to four-year dispute with Algeria
Cairo-based Global Telecom Holding (GTH) has agreed to sell a 51 per cent stake in Orascom Telecom Algerie (Djezzy) to the Algerian National Investment Fund for $2.643bn.
The transaction, expected to be completed by the end of 2014, will see GTH retain control over Djezzy. Combined with a dividend payment Djezzy will be distributing, the transaction will generate total proceeds of $4bn. That amount will be used to pay off debt.
The sale puts an end to a four-year tax dispute with Algeria, which has agreed to lift its ban on Djezzys ability to conducting foreign exchange transfers upon the payment of a $1.3bn fine.
The payment of the fine will result in a one-off charge of $2bn in both Russias Vimpelcoms (which owns 51.9 per cent of GTH) and and GTHs 2013 financial statements.