Orascom to negotiate with Algerian gov’t over Djezzy acquisition
Telco’s Orascom and MTN see shares rise on Djezzy subsidiary sale news
May 28, 2010 9:16 by Rasha Reslan
Orascom telecom shares rose 9 percent yesterday, as the company announced it will enter talks with the Algerian government regarding sale of its Algerian subsidiary, Djezzy, Zawya Dow Jones reported Friday.
South African officials on a visit to Algiers earlier this month reportedly requested that South Africa’s MTN be allowed to acquire the Algerian subsidiary, but the Algerian government declined the request in a statement to the official news agency, Reuters reported.
“The Algerian state holds to its right of pre-emption over the sale of Djezzy … and will not allow its purchase by the South African firm MTN,” Algerian Trade Minister Hachemi Djaaboub was quoted as saying by the official APS news agency.
Shares in South Africa’s MTN rose on the news that algeria’s government would disallow the deal, Reuters said.