In Algeria, digital operator VEON has reported the completion of the sale of its stake in mobile network operator Djezzy, following a payment of over US$682 million from the Algerian National Investment Fund, Fonds National d’Investissement (FNI).
This transaction follows VEON’s previously announced strategy to streamline its portfolio in July 2021.
Commenting on the sale, Group CEO of VEON, Kaan Terzioglu, said, “we completed the sale of our share in Djezzy to our partner FNI, marking an important step in our strategy of streamlining VEON’s portfolio.”
Recently the digital operator sold its 45.57 per cent stake in its Algerian subsidiary, Omnium Telecom Algérie SpA. Omnium owns the Algerian mobile network operator Djezzy.
The entity said the cash received from this transaction will further strengthen VEON Group’s liquidity position.
According to industry reports, VEON Group’s total cash and deposits has increased to over US$3.1 billion, including US$2.5 billion equivalent of USD- and EUR-denominated cash and deposits.
Terzioglu highlighted, “The sale of our share in Djezzy to our partner FNI marks a crucial turning point in our strategy of streamlining VEON’s portfolio.”
“Under the leadership of Matthieu Galvani, the Djezzy team has built an exemplary telecommunications operator, which will continue to contribute and serve Algeria with best-in-class services. I want to thank the team for their hard work and the FNI for a successful partnership. We will continue to focus on large-scale, emerging markets where we can generate value with our digital operator model,” he added.