Algeria confirms no-sale statement over Djezzy

Algeria’s government has confirmed it would not allow Egyptian group Orascom Telecom to sell its Algerian mobile phone unit Djezzy to South Africa’s MTN.
MTN shares in Johannesburg rallied on the news, with traders responding to concerns that MTN could have diluted its value by going ahead with the acquisition.

South African officials earlier this week used a visit to Algiers by South Africa president Jacob Zuma to ask the Algerian authorities to let MTN establish a presence in the North African market by buying Djezzy.

Algeria’s government is blocking the Egyptian firm from selling the unit to MTN, a central component in a broader deal that included Orascom Telecom’s other assets in Africa.

“The Algerian state holds to its right of pre-emption over the sale of Djezzy … and will not allow its purchase by the South African firm MTN,” trade minister Hachemi Djaaboub was quoted as saying by Algeria’s official APS news agency.
Algeria blocked the Djezzy sale last month and said it wanted to buy the business, dealing a blow to MTN’s plans to buy all or part of Orascom Telecom’s activities.