May 9, 2013 / 11:26 AM / in 5 years

Algeria seeks new valuation for Vimpelcom's Djezzy - source

ALGIERS, May 9 (Reuters) - The Algerian government will seek a new valuation for Vimpelcom’s local mobile phone unit Djezzy before acquiring 51 percent of it, a government source told Reuters.

“There will be a new valuation of Djezzy,” the source, who asked not to be named, said on Thursday.

Russia’s Vimpelcom acquired Djezzy as part of a $6 billion deal to buy the assets of Egyptian firm Orascom Telecom.

However, under pressure from the Algerian government to cede control of the unit - which was the most lucrative part of Orascom Telecom - Vimpelcom agreed to sell it a 51 percent stake.

The Algerian government had appointed law firm Shearman & Sterling LLP to advise it on the valuation of Djezzy.

The source did not say what figure the law firm had produced, nor who would calculate the new valuation.

The Algerian finance ministry declined to comment. Vimpelcom did not immediately respond to email and telephone requests for comment.

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