VimpelCom selling Djezzy for $2.6B
While other carriers look for mergers and acquisitions in Europe, two major Dutch telecoms are shrinking their asset portfolios.
VimpelCom recently announced it is selling its 51% stake in Algeria’s Djezzy for $2.6 billion. The Amsterdam-based telco and its subsidiary Global Telecom Holding have closed on the sale of the stake in Omnium Telecom Algeria, formerly known as Djezzy, to the Algerian National Investment Fund.
VimpelCom, a global telecom service provider with operations in 14 countries, isn’t planning to exit Djezzy completely. The companies have also entered into a shareholder agreement that gives GTH continued operational control over the Algerian telco.
“Today, we have entered into a long-term relationship with the Algerian National Fund, creating a private-public ownership structure for Djezzy,” said Jo Lunder, VimpelCom CEO. “With this new ownership structure, Djezzy is positioned better than ever to lead the way in Algeria, offering customers high-quality mobile services and the best digital experience.”
Lunder also noted that the deal will make significant cash available to GTH and VimpelCom to pay down gross debt.
Another Netherlands-based telco, KPN, has agreed to sell its Germany subsidiary, SNT Deutschland, a contact center solutions provider, for an undisclosed amount to the Livia Group, an industrial holding company based in Munich and Vienna. KPN said the deal fit with its strategy to focus on “its core footprint.” The transaction is expected to close in the first quarter of this year.
More telecom news from Europe, the Middle East and Africa
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