VimpelCom Agrees on Vietnamese Operations Financing
OREANDA-NEWS. April 26, 2011. Amsterdam and New York (April 26, 2011) - “VimpelCom Ltd” (“VimpelCom” or the “Company”) (NYSE: VIP), one of the world’s largest integrated telecommunications services operators, announced today that it has agreed with its local partner in Vietnam on a financing plan for its Vietnamese joint venture, GTEL-Mobile Joint Stock Company (“GTEL-Mobile”), that could result in the Company providing investments in total of up to USD 500 million through 2013. The Company has completed the first stage of the financing plan by paying USD 196 million for newly issued shares and thereby increasing its stake in GTEL-Mobile from 40% to 49%. All proceeds from this financing will be used for GTEL-Mobile development. The Company’s local partner in the joint venture, GTEL, has retained a 51% interest in GTEL-Mobile. In connection with this investment, the joint venture parties have also agreed that the Company will assume operational management of GTEL-Mobile.
Going forward the Company has agreed to invest another USD 304 million under this plan, which would increase its economic interest in GTEL-Mobile from 49% to 65%. The additional financing and equity increase are subject to satisfaction of certain performance targets by GTEL-Mobile and receipt of further regulatory approvals.
Alexey Blyumin, General Director of GTEL-Mobile said, "We look forward to re-launching our operations in Vietnam and to strengthening our position in the high-potential South-East Asia cluster. We are confident that we will be able to develop our operations in Vietnam in close cooperation with our partner, GTEL, while taking advantage of the scale and scope of the newly enlarged VimpelCom Group".
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