Egypt’s Global Telecom reports wider loss on Djezzy settlement

May 26, 2014 11:49 am

Egypt’s Global Telecom has restated its results for last year, increasing its net loss to EGP20bn ($2.81bn) from a previously reported $924m after booking in the costs of settling a long running dispute with Algeria over ownership of local telecoms operator, Djezzy, Reuters has reported. Last month, Global Telecom, previously called Orascom Telecom and 51.9% owned by Russian-controlled telecoms group Vimpelcom, sold a 51% stake in Orascom Telecom Algeria (Djezzy) to the Algerian National Investment Fund for $2.6bn in a deal which Vimpelcom said would leave it with 49% of Djezzy but result in a $2bn writedown. The dispute with the Algerian government over Djezzy’s ownership dated back to before Vimpelcom bought into Orascom Telecom in 2010, as part of a wider $6bn deal to acquire Egyptian tycoon Naguib Sawiris’s various telecoms interests.