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Global Telecom gets favorable valuation for USD 2.5bn sale of controlling stake in Algeria's Djezzy [IntelliNews - Weekly Reports]
[August 24, 2014]

Global Telecom gets favorable valuation for USD 2.5bn sale of controlling stake in Algeria's Djezzy [IntelliNews - Weekly Reports]


(IntelliNews - Weekly Reports Via Acquire Media NewsEdge) A favourable valuation by HC Securities, a Cairo-based advisory firm, of the controlling stake Cairo-listed Global Telecom Holding (GTH), formerly Orascom Telecom, holds in Algerian mobile operator Djezzy paved the way for a the USD 2.5bn stake sale. HC Securities' report stated that the price offered by the Algerian government to purchase 51% controlling stake in Orascom Telecom Algeria, better known as Djezzy, offered a 4% premium to its estimated fair value.



The valuation would be submitted to shareholders to be voted on in a meeting scheduled for August 26. The motion requires 66.7% of the votes of those present to be in favour. Russian mobile operator Vimpelcom holds a 51% stake in GTH and has previously agreed to the terms of the sale. GTH would retain operational control over Djezzy while raising its stake to 49% through the purchase of other minority shareholdings.  (c) 2014 Emerging Markets Direct Media Holdings LLC Provided by SyndiGate Media Inc. (Syndigate.info).

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