Logo of Phnom Penh Post newspaper Phnom Penh Post - VimpelCom closes Laos deal

VimpelCom closes Laos deal

VimpelCom closes Laos deal

BEELINE’S majority owner VimpelCom has completed its acquisition of 78 percent of Millicom Lao Company, paying US$88 million for the stake.

The firm’s chief executive officer Alexander Izosimov said with the closing of the transaction in Laos, Southeast Asia remained an important part of the firm’s strategy for international expansion.

“The telecommunications market in [Southeast Asia] has considerable potential, and we are confident in our ability to take advantage of the opportunities this region has to offer,” he stated in a VimpelCom press release.

The $88 million price tag contains some $65 million for equity and $23 million for repayment of debt, repayment of shareholder loan, and intra-group indebtedness, the press release said.  

The deal to purchase Luxembourg’s Millicom International Cellular’s interests in Laos was originally announced in September 2009 with a $66 million price tag. Completion, however, had been delayed “until it received the endorsement of the Lao government”.

Company officials at Beeline Cambodia did not return  a request for further comment yesterday.

Millicom Lao claimed over 500,000 subscribers at the end of February 2011, with market share of some 25 percent, according to a press release. The remaining 22 percent of Millicom Lao Company is owned by the Laos government.

Millicom had also been the majority owner of Cambodian provider Mobitel, before a November 2009 move that saw its partner, the well-known conglomerate Royal Group, purchase 61.5 percent of the operator.  

That deal won Telecomfinance magazine’s “2009 Asia Deal of the Year”.

VimpelCom is also planning to merge with Wind Telecom SpA to create the world’s sixth-largest phone company.

MOST VIEWED

  • Vietnam: Tougher sentences for child abusers

    Several National Assembly (NA) deputies in Vietnam are calling for tougher penalties to be handed down to child abusers. They hope stricter punishments will act as a strong deterrent to prevent offenders committing further offences in the future. Extreme measures such as chemical castration were

  • Central bank to shun small US banknotes

    The National Bank of Cambodia (NBC) is considering not accepting smaller denominated US dollar banknotes – $1, $2 and $5 – from banks and microfinance institutions (MFIs) which it said are flooding its stockpile as the demand for those notes is low. While some banking insiders welcomed the move as

  • PM lauded in Covid-19 fight

    World Health Organisation (WHO) director-general Tedros Adhanom Ghebreyesus sent a letter to Prime Minister Hun Sen thanking him for following the WHO’s guidance and commending Cambodia’s efforts in the fight against Covid-19. In his letter made public by the Ministry of Foreign Affairs

  • Workers return, hope for salaries

    More than 600 factory workers in the capital’s Chaom Chao commune in Por Sen Chey district returned to work after the factory’s owner promised to pay their salaries in instalments until the middle of next month. On Tuesday and Wednesday, more than 600 workers gathered

  • Women detained for forcing kids to beg

    Two women were sent to Phnom Penh Municipal Court on Thursday for forcing six children to beg for money for several months at the Chhouk Meas market in Krang Thnong commune in the capital’s Sen Sok district. Phnom Penh Department of Anti-human Trafficking and

  • Vietnamese tents baffle border guards

    Kandal and Takeo provincial authorities bordering Vietnam have expressed concern after witnessing irregularities by the Vietnamese authorities, including the deployment of soldiers to erect 114 camps just 30m from the border. Takeo provincial governor Ouch Phea told The Post on Thursday that Vietnamese soldiers had erected 83