VimpelCom, the newly-formed company that controls Russia’s third-largest (VimpelCom) and Ukraine’s largest (Kyivstar) mobile operators, is apparently looking to expand to new markets. The plan, however, is not to go and build new networks from the scratch — rather, the idea is to grow by acquisitions. And it seems they’re eyeing for Egypt’s Orascom Telecom.
According to Russian newspaper Kommersant, VimpelCom is looking to buy Orascom’s Italian mobile firm WIND and take a 51% stake in Orascom itself in a $6.5 billion deal. “The deals suggest a near-doubling of VimpelCom’s scale at the revenue level and turning it into a truly international player with diversified geographical exposure,” UniCredit Securities analysts wrote in a research note.
Unidentified sources claim a deal could be announced soon, giving Orascom’s owners around 20-23 percent of voting shares in VimpelCom Ltd. At the same time, VimpelCom’s existing owners, Alfa-Group and Norway’s Telenor, would see their shareholdings decrease to 27 and 35 percent, respectively.
We’ll definitely keep our eyes open for any news coming out of VimpelCom and keep you guys and gals in the loop. Stay tuned…
[Via: MobileBusinessBriefing]