VimpelCom, a leading global provider of telecommunications services, announced today that it has signed an agreement to sell the company's entire indirect 49 per cent stake in GTEL Mobile Joint Stock Company in Vietnam and give up operational control of GTEL Mobile.
GTEL Mobile-illustration photo
The stake will be sold to GTEL Transmit and Infrastructure Service One Member Company Limited, a related party of the company's Vietnamese local partner, Global Telecommunications Corporation, according to the company’s announcement.
Under the terms of the agreement, the purchaser will pay cash consideration of $45 million upon satisfaction of usual conditions precedent. Upon completion of the sale, VimpelCom will have no further obligations or liabilities to Global Telecommunications Corporation or GTEL Mobile. Additionally, GTEL Mobile will discontinue the use of the Beeline trademark after a six months transition period.
VimpelCom impaired its investment in Vietnam in the fourth quarter of 2011, following a detailed business plan review, the company said in the announcement.
“VimpelCom does not expect any additional losses related to the sale of the above-mentioned interest,” it stated.
“We have previously outlined our Value Agenda, within which all of our operations are reviewed to assess their future value to the Group. The decision to dispose of our interest in GTEL Mobile is a result of this process, which focuses on allocating capital to those markets where we see the best opportunities to generate shareholder value,” Jo Lunder, chief executive officer of VimpelCom, said.
VimpelCom is one of the world's largest integrated telecommunications services operators providing voice and data services through a range of traditional and broadband mobile and fixed technologies in Russia, Italy, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Vietnam, Cambodia, Laos, Algeria, Bangladesh, Pakistan, Burundi, Zimbabwe, Central African Republic and Canada.
The company'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.