Djeezy

Djezzy is one of the largest mobile operators in Algeria.

History

2022: Veon sells stake in Algerian telecom company for $682 million

At the end of April 2022, the telecommunications holding Veon, which includes the Russian VimpelCom, named the value of the transaction for the sale of a stake in the Algerian telecom operator Djezzy. Under the terms of the transaction, the Algerian National Investment Fund will buy 45.57% of Djezzy for $682 million and increase its stake in this telecommunications company.

According to Interfax news agency, earlier analysts estimated Veon's share in Djezzy in the range of $370-380 million.

Veon sells stake in Algerian telecom company

According to the publication Connecting Africa, the sale of the Algerian business was not a surprise, since Veon previously indicated that it could sell more of its operating companies, which are similar in size to the Armenian division. The group said in a statement that this step "will further optimize Veon's activities, allowing it to better focus on the main markets."

Sergie Herrero, former chief executive of Veon, said in a conversation with Light Reading that the group regularly evaluates its portfolio and intends to focus on the main markets that will contribute to the rise of the holding's quotes.

In one of the financial reports, Veon called Algeria and Bangladesh "border markets," Pakistan, Ukraine, Kazakhstan and Uzbekistan - "growth engines," and Russia - "our cornerstone."

In the first quarter of 2022, Djezzy's service revenue reached 22.71 billion Algerian dinars, which is 7.6% more than a year ago. Relative to the last three months of 2021, the operator's revenue rose 3.8%. Annual EBITDA increased by 9%.^[1]

2021: Veon sells stake in Djezzy and leaves Algeria market

In early July 2021, Veon announced the sale of its entire stake in Djezzy to the Algerian State National Investment Fund (Fonds National d'Investissement). The deal was concluded by selling a put option on a 45.57% stake in an Algerian telecommunications company. The financial component of the agreement is planned to be disclosed later.

According to Veon, having disposed of assets in Algeria, the company will be able to focus on the development of major markets.

Veon sells stake in Djezzy and leaves Algeria market

Veon's revenue in Algeria has been falling for a long period, and during the period of the coronavirus pandemic COVID-19, the negative trend intensified. According to the results of the first quarter of 2021, Djezzy's revenue decreased by 14%, or 5.1% in local currency. The operator's subscriber base amounted to 14.1 million, of which 7 million were users of 4G networks, and three years earlier the company had 16.5 million customers.

The Djezzy website reports that by the beginning of July 201, the company's network covers 95% of the population of Algeria. The operator continues to introduce 4G technology and expects that by the end of 2021 it will be available to more than 50% of the country's residents.

Djezzy's main competitors are the state-owned company Algérie Télécom, which operates under the Mobilis brand, and Ooredoo (68% owned by the Qatar government).

Veon is actively selling its assets. Mobile operators were sold in Italy, Canada and Black Africa. Of the assets once owned by Egyptian billionaire Naguib Sawiris, Veon only has mobile operators in Bangladesh and Pakistan.

2011-2015

Veon first became the owner of Djezzy in 2011 as part of a deal to acquire the largest telephone company in North Africa, Orascom Telecom Holdings. In 2015, she sold a 51% stake in Djezzy to the Algerian government for $2.6 billion.^[2]

Notes