Fixed Mobile Convergence

VimpelCom, a telecom operator in Russia, CIS, Ukraine and South-East Asia, revealed that it has signed a non-binding Memorandum of Understanding with the Ministry of Finance of the Algerian Democratic Peoples Republic to explore the possible sale of a majority stake in Orascom Telecom (News - Alert) Algerie. 

Back in 2011, VimpelCom bought Orascom’s Algerian unit, Djezzy, as part of a $6 billion deal to buy control of Egyptian telecoms group Orascom Telecom, but the transaction was clouded due to uncertainty that rose after Algeria said it wanted it to be nationalized.

According to a press release, VimpelCom has currently agreed that it will consider selling a majority stake in OTA, subject to an acceptable price and satisfaction of other conditions. Both parties have also agreed to consider alternative acquisition scenarios that could be mutually beneficial to both parties.

The transaction is subject to definitive documentation and mutual agreement on price. Following signing of the MOU the Ministry of Finance and VimpelCom said it 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.

VimpelCom owns 51.7 percent of OTH, which, in turn, owns 96.81 percent 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.

VimpelCom has been 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 provides services under the Beeline, Kyivstar, djuice, Wind, Infostrada Mobilink (News - Alert), Leo, banglalink, Telecel, and Djezzy brands.

In related news, VimpelCom recently announced the appointment of Bobby Leach as the Company’s Group Director Communications, reporting to Rob Conway, Chief of International Affairs for VimpelCom. Bobby will be responsible for communications at group level, including internal communications and media relations.

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