VimpelCom seals agreement with Algeria to explore sale of Orascom Telecom Algerie
Source: BI-ME , Author: Posted by BI-ME staff
Posted: Tue January 10, 2012 7:51 pm
china wholesale market

ALGERIA. VimpelCom Ltd. (NYSE: VIP) and the Ministry of Finance of the Algerian Democratic Peoples Republic, today announced that they have entered into a non-binding Memorandum of Understanding to explore the possible sale to the Algerian State by Orascom Telecom Holding S.A.E.(OTH) of an interest in its subsidiary Orascom Telecom Algerie (OTA). 

VimpelCom has agreed that it will consider selling a majority stake in OTA, subject to an acceptable price and satisfaction of other conditions. 

The two sides have also agreed to consider alternative acquisition scenarios that could be mutually beneficial to both parties. 

Any such transaction would be subject to, among other things, definitive documentation and mutual agreement on price.  Following signing of the MOU the Ministry of Finance and VimpelCom will undertake a process to agree on the valuation of OTA with the involvement of each party's financial advisors.  The transaction will also require corporate approvals by OTH and VimpelCom.
 
OTH has not been party to the discussions regarding the MOU and the transaction.  VimpelCom owns 51.7% of OTH, which, in turn, owns 96.81% of OTA.  It is contemplated that the governance and management control of OTA would be structured so as to permit OTH and, consequently, VimpelCom to continue to consolidate OTA under International Financial Reporting Standards.

About VimpelCom

VimpelCom is one of the world's largest integrated telecommunications services operators offering a wide range of wireless, fixed, and broadband services in Russia, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Vietnam, Cambodia, Laos, Algeria, Bangladesh, Pakistan, Burundi, Zimbabwe, Central African Republic, Italy and Canada.

VimpelCom's operations around the globe cover territory with a total population of approximately 864 million people. VimpelCom provides services under the "Beeline", "Kyivstar", "djuice", "Wind", "Infostrada" "Mobilink", "Leo", "banglalink", "Telecel", and "Djezzy" brands. VimpelCom has more than 200 million mobile subscribers on a combined basis. VimpelCom is traded on the New York Stock Exchange under the symbol (VIP).

For more information visit www.vimpelcom.com

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: March 27, 2015
INTERNATIONAL. Yemen's close proximity to Saudi Arabia and its strategic location on one side of the fourth busiest shipping lane for crude oil, raise worries about potential disruptions.
date:Posted: March 27, 2015
UAE. Consumption of luxury goods up 11% in the GCC, according to Bain & Company; China luxury market shows a shift in consumer preferences and ties to the GCC; In the UAE, Chinese represent about 2.5% of overall tourists, but account for 7% of the mall footfall and even bigger part of the spend.
date:Posted: March 26, 2015
UAE. Deloitte Middle East conference addresses recent changes in regulation and tax; Developments such as the refurbished runway at Dubai, the mid-field terminal project at Abu Dhabi, the opening of Hamad international in Doha, showcase the commitment to the aviation sector.
UAE. Consumption of luxury goods up 11% in the GCC, according to Bain & Company; China luxury market shows a shift in consumer preferences and ties to the GCC; In the UAE, Chinese represent about 2.5% of overall tourists, but account for 7% of the mall footfall and even bigger part of the spend.
dhgate