Sunday, July 20, 2008

Russia's VimpelCom Expands to Cambodia

VimpelCom, which operates mobile networks in Russia, Kazakhstan, Ukraine, Uzbekistan and Tajikistan, has acquired a 90% stake in the Cambodian company Sotelco, which holds a GSM 900/1800 license and related frequencies for the territory of Cambodia. The transaction was made through the purchase of 90% of Sotelco's parent company, Atlas Trade Limited, for US$28 million from VimpelCom's largest shareholder Altimo. The remaining 10% of Atlas will stay with a local partner, a Cambodian entrepreneur. VimpelCom has also acquired a call option to purchase the 10% interest of the local partner for market value at the date of exercise of the option.

  • In September 2007, VimpelCom executed a Principal Agreement to establish a mobile telecommunications joint venture in Vietnam under the name of GTel Mobile. VimpelCom expects to invest up to $1 billion over the next several years in the development of a GSM mobile network and provide technical and operational expertise to the joint venture. The other participants in the joint venture will be a company owned by the Ministry of Public Security of Vietnam and Millennium Global Solutions Group, Inc., a U.S. company. In accordance with Vietnamese investment laws, VimpelCom will own a minority voting stake in the joint venture.

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