Egypt's Orascom Telecom says will not pay 2010 dividend

Reuters, Wednesday 18 May 2011

Company cites a lack of cashflow from foreign operations and its dispute with Algeria as being behind the decision

Egyptian group Orascom Telecom will not pay a dividend for 2010 because of a lack of cashflow from several foreign businesses.

"We have decided not to issue a dividend because of the lack of cashflow to the company in 2010 from Pakistan, Bangladesh, Canada and Africa as well as the negative impact from our Algerian unit," vice chairman Emad Farid said on Wednesday.

Orascom Telecom is in dispute with Algeria, which wants to buy Orascom's local unit Djezzy and blocked Orascom from transferring the unit's profit back to the parent company in Egypt.

Orascom was due to report its first-quarter results on Wednesday.

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