More Africa NewsAlgeria: VEON has started its exit from the capital of Djezzy

July 6, 2021by myles0
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Algeria’s third mobile operator, Djezzy, will soon be 100% government-owned. Its foreign shareholder VEON has decided to pay more attention to its activities in Eastern Europe and Asia. The difficult year 2020 for the group contributed to this decision.

The Veon company specialized in providing connectivity services and Internet, announced Thursday 1 st July the exercise of its put option to sell its entire 45.57% stake in its Algerian subsidiary, Omnium Telecom Algérie SpA operating under the trade name of Djezzy. Through this financial transaction, the Dutch holding company began to exit the Algerian telecoms market where it has been present for ten years. It wants to sell all of its shares to its co-shareholder, the Algerian National Investment Fund, which already owns 51% of the company.

“  The exercise of the option triggers a process whereby a third party appraisal is undertaken to determine the fair market value at which the transfer is to take place. This important step will further streamline VEON’s operations  , ”said the telecoms company.

VEON leaves Djezzy after a rather difficult year 2020 marked by the fall in the income of all of its subsidiaries, especially in Algeria where it fell from 775 million USD in 2019 to 689 million USD in 2020. The group’s overall income is increased from $ 8.864 million in 2019 to $ 7.980 million in 2020.

In 2020, VEON entered into an agreement with Team LLC for the sale of its Armenia branch. In September 2020, the Dhabi group exercised its put option to sell VEON its 15% stake in Pakistan Mobile Communications Ltd. In addition to the exit of the capital of Djezzy, the telecoms company confides that it brings together the financial means which will allow it to better concentrate on its main markets which are among others Russia, Ukraine, Kazakhstan, Uzbekistan, Pakistan. 

Source: Agence Ecofin

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