Vimpelcom's Algerian mobile phone firm Djezzy is now the subject of a due diligence review from an interested buyer. The government of Algeria is seeking a new valuation for the telecommunicatons firm before the purchase of 51% stake is to be done.
A government source told Reuters, who spoke on condition of anonymity said, "There will be a new valuation of Djezzy."
Vimpelcom, the Russian telecommunications giant, had purchased Djezzy as part of a US$6 billion dollar package for assets formerly owned by Orascom Telecom of Egypt.
Under mounting pressure from the Alegerian government to divest its control of the company, Vimpelcom agreed to a 51% share sale with the government. Djezzy was the most lucrative asset in the portfolio from Orascom Telecom.
The Algerian government has engaged the services of Shearman & Sterling LLP for advisory services of the valuation of Djezzy.
Vimpelcom did not respond to email requests for comment on the matter while the Algerian finance ministry declined to make any comment on the matter.
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