The mobile network Beeline will be discontinued in Vietnam due to the divestment of Russian VimpelCom Ltd, says a recent deal.
Accordingly, Vietnamese GTEL Mobile Joint Stock Co will not continue using the Beeline brand after six months from the date of transfer.
VimpelCom Ltd has signed an agreement to sell all its indirect 49 percent stake in GTEL Mobile in Vietnam and give up operational control of GTEL Mobile.
The stake will be sold to GTEL Transmit and Infrastructure Service One Member Co Ltd, a related party of the company’s Vietnamese local partner, Global Telecommunications Corp (GTEL).
Under the agreement, GTEL will pay a cash consideration of US$45 million upon satisfaction of the conditions of the deal.
Upon completion of the sale, VimpelCom will have no further obligations or liabilities to Global Telecommunications Corp or GTEL Mobile.
In late July of 2009, GTEL Mobile, a joint venture between GTEL and VimpelCom, officially announced the launch of the Beeline, the seventh cellular telecommunications network in Vietnam.
The first telecommunications network with foreign capital in Vietnam is well known for its big promotional campaigns intended to attract customers.
Most recently, late last year, Beeline launched its "Billionaire" package, in which the company placed VND1 billion into the accounts of its customers for intra-network calls.