CAIRO: Algeria’s government might consider buying Orascom Telecom’s Algerian unit directly or purchasing it via another body, a minister said on Tuesday, complicating a sale to South Africa’s MTN.
Orascom has said it is in talks to sell some or all of its assets to MTN but Algeria has said it would block a deal by resorting to what it says is its right of first refusal to buy Djezzy.
Asked whether the government might buy Djezzy, Algerian Telecommunications Minister Hamid Bessallah told Al Arabiya satellite television: "We will negotiate. The Algerian government is ready to buy any organization."
"But perhaps (the purchase) could be through another organization to facilitate the deal," he added.
He did not mention a price the government or any government-linked entity might pay for the unit.
Algerian media has speculated that Sonatrach, the state energy firm, could be a vehicle to buy Djezzy.
The smallest of Djezzy’s two competitors is Mobilis, a state-owned company. The other competitor is Nedjma, majority held by Kuwait’s Wataniya.
Djezzy accounted for almost 37 percent of Orascom’s 2009 revenue.
Algeria told Orascom last year it owed $597 million in back taxes and penalties and a business lobby group said the country was implementing a tougher investment strategy.
Orascom disputed the bill, but has paid the full tax bill and most of the penalties. The case is still in the courts.
Orascom and MTN confirmed they were in talks on April 27.
Bessallah said Orascom had shown a lack of respect for the Algerian government by not discussing their intent to sell with authorities before entering talks with MTN. He also repeated that the government has a right of first refusal.
Orascom’s chairman, Naguib Sawiris, has said he has requested a meeting with senior Algerian ministers, including Bessallah, the prime minister and the finance minister.
An Orascom spokeswoman said no date has been set for a meeting. The Algerian ambassador to Egypt said he had not been asked to arrange a meeting.
