EGYPTIAN cellphone group Orascom revealed yesterday for the first time the price MTN was prepared to pay for its lucrative Algerian unit, Djezzy, even as it confirmed talks with the Algerian government over the same asset. Orascom Telecom's executive chairman, Naguib Sawiris, told Reuters that MTN had offered $7,8bn for Djezzy, the biggest and most profitable unit in its stable. A law passed about two years ago by the Algerian government gives the state first right of refusal on a 51% stake in Djezzy in the event of a sale. Mr Sawiris said Wednesday that he believed a meeting between the Algerian and Egyptian presidents at a gathering in France this week would improve the atmosphere around the talks. “I hope they (the Algerian government) will negotiate in good faith,” he said. Asked about the status of the talks with MTN, widely expected by analysts to exclude Djezzy, Mr Sawiris said: “It's not yet settled, we've been in discussions.” Djezzy was the main component in a possible broader deal that would have made MTN the world's third-biggest cellphone company if all of Orascom's assets were included. The Algerian veto threw doubt on the chance of a larger deal going through, but talks over the sale of some Orascom assets to MTN have nevertheless continued. The talks on a deal Wednesday with the Algerian government has had analysts speculating about MTN's options. This could include MTN being allowed to buy a minority stake in Djezzy and the Algerian government a majority one. André Wills, MD of Africa Analysis, said nothing was impossible. “It all depends on what MTN stands to benefit and also what the strategy of the Algerian government is.” Spiwe Chireka, an analyst at Frost & Sullivan, said that should the Algerian government reach an agreement to buy Djezzy, it might need a partner to run the business. “It would be a national asset and the government would probably want to keep it that way. But they might look elsewhere for assistance,” Ms Chireka said.
