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: August 26, 2014
INTERNATIONAL. Is it time to stop thinking about stabilizing Syria and Iraq and start thinking of a new dynamic outside of the artificial states that no longer function? To do this, we need to go back to Lebanon, the first state that disintegrated and the first place where clans took control of their own destiny.
date:Posted: August 25, 2014
INTERNATIONAL. Commodities have been generally flat on the week as a rise in industrial metals was offset by losses across other sectors such as metals and grains.
date:Posted: August 25, 2014
UAE. With its oil wealth, population growth and strong demand for industrial and consumer goods, the MENA region is an attractive market. There are, however, potential pitfalls in doing business, particularly when it comes to appointing local agents to distribute products in the region.
SAUDI ARABIA. Strong demand fundamentals combined with increased public and private sector spending pushed up the average sales price; Momentum expected to continue as Riyadh attracts and promotes investment in industrial and supporting logistics facilities.
dhgate