Akin Gump advises VimpelCom on sale of its stake in Orascom Telecom Algérie
International law firm Akin Gump is advising VimpelCom on the sale by its Egyptian-listed subsidiary Global Telecom Holding (GTH) of its 51 per cent stake in Orascom Telecom Algérie (OTA or “Djezzy”) to the Fonds National d’Investissement (FNI), the Algerian National Investment Fund.
The purchase consideration of USD2.643 billion plus dividends and proceeds, due to be distributed immediately prior to closing, of USD1.862 billion.
The deal, which was signed on 18 April 2014, is anticipated to close by the end of 2014. Upon closing, the parties will settle all outstanding disputes, at which point GTH and the FNI will enter into a shareholders’ agreement that will govern their relationship as shareholders in OTA going forward.
GTH will maintain operational control over Djezzy, which is Algeria’s principal mobile network operator, and VimpelCom will continue to fully consolidate OTA. This partnership between GTH and the FNI provides OTA with a stable shareholder structure on which to build and strengthen its operations in Algeria.
The transaction follows VimpelCom’s combination with Wind Telecom in April 2011, which created the world’s sixth-largest mobile telecommunications carrier by subscribers and included the acquisition of 51.7 per cent of Orascom Telecom Holding S.A.E. Akin Gump also advised VimpelCom in this transaction.
Akin Gump’s London-based team advising VimpelCom was led by corporate partners Dan Walsh and Sebastian Rice with support from finance partner Fred Heller, international disputes partner Justin Williams, counsel Graeme Bell and David Sewell and associates Francesca Sullivan, Anthony Martinez and Amanda Tan as well as teams in the firm’s London and Moscow offices.
Walsh says: “This is another highly significant development for VimpelCom, and we are very pleased to be advising our long-standing client in this complex transaction.”
Gide Loyrette Nouel is advising VimpelCom in relation to French and Algerian law, led by partners Jean-Gabriel Flandrois and Samy Laghouati. Shearman & Sterling is advising the Fonds National d’Investissement (FNI).
- By Category
- News from other sites
- Special Reports
- Partner events