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

  • Time to avert disastrous Covid situation: officials

    The Covid-19 situation in Cambodia is heading towards further large-scale community transmission as the total number of confirmed cases is nearing 61,000 and the death toll passed 900 on July 10, senior health officials warned. Ministry of Health spokeswoman Or Vandine expressed concern that the country was going

  • Visa A holders get to quarantine at Himawari Hotel

    The Ministry of Health has permitted foreign diplomats, UN and International NGO officials to undergo quarantine at Himawari Hotel in the capital in case they do not have a separate place suitable for this purpose, but the government would not be responsible for the expenses.

  • Two luxury hotels latest quarantine options for inbound travellers

    The Inter-Ministerial Committee to Combat Covid-19 has designated two luxury hotels as alternative quarantine options for travellers who wish to enter Cambodia through Phnom Penh International Airport – Sokha Phnom Penh Hotel & Residence and the Courtyard by Marriott Phnom Penh. In a notice detailing guidelines issued

  • Baby saved as mother is lost to Covid

    Newborn baby Neth David has had a rough start in the world. His mother, Vong Daneth, was seven months pregnant when she contracted a severe case of Covid-19. When it became clear to her doctors that she would not survive, they performed a cesarean section

  • Jabs for kids bring hope for school reopenings

    Cambodia is tentatively planning to reopen schools – at least at the secondary level – when the vaccination of children aged 12-17 is completed, even though daily transmissions and deaths in other age groups remain high. Schools across the country have been suspended since March 20, one month

  • Hun Sen: Get 12-17 age group ready for Covid jabs

    Prime Minister Hun Sen has told parents of children aged 12-17 in Phnom Penh and the provinces of Kandal and Preah Sihanouk to get them ready for vaccinations soon. “There is a need to vaccinate children and youths aged 12 to 17. According to the statistics provided