You are hereHome
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

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: July 24, 2014
UAE. There is evidence of a more litigious approach developing in the area of medical malpractice. Damages awards which have historically been low, are now on an upwards trend.
date:Posted: July 24, 2014
UAE. Report data shows that 64% of TV viewers in Saudi Arabia and 50% in the UAE are engaged in other digital activities simultaneously, higher than the global average.
date:Posted: July 24, 2014
INTERNATIONAL. The world is well aware of the concerns around terrorism and Nigeria's ongoing struggle with poverty. However the report finds that Nigeria has the potential to expand its economy by roughly 7.1% per year through 2030.
dhgate