Russia's VimpelCom in $6.5 billion merger deal with Egyptian mobile phone operator
05 Oct 2010
VimpelCom Ltd, Russia's second largest mobile phone service provider yesterday said that it has agreed to merge with Weather Investments SpA, the investment company headed by Egyptian telecom mogul Naguib Sawiris, in a deal valued at over $6.5 billion.
Under the deal, VimpelCom would become the 100 per cent owner of Wind Telecommunicazioni, the third largest mobile operator and second largest fixed line operator in Italy, and own 51.7 per cent of Orascom Telecom Holding, a leading international telecommunications company operating in the Middle East, Africa and South Asia.
The deal excludes Orascom Egypt and North Korea operations, as well as Wind Hellas in Greece.
The merger would create a company with $21.5 billion in revenues as well as a top tier global telecom company with strong platforms across Europe, Asia and Africa.
Post closing, VimpelCom will become the world's fifth largest mobile operator by subscribers, with operations in 20 countries across Europe, Asia, Africa and North America.
Amsterdam-based VimpelCom will pay $1.8 billion in cash and will give 325.6 million new shares to Sawiris and other shareholders in Weather Communications making up 20 per cent economic interest and 18.5 per cent voting interest in the new company.
