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

  • Hun Sen: Full country reopening to be decided in two weeks

    Prime Minister Hun Sen has announced that if the Covid-19 situation remains stable for 15 consecutive days from the end of the October 5-7 Pchum Ben public holiday, Cambodia will reopen fully, albeit in the context of Covid-19 whereby people have to adjust their lives to

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Hun Sen: Cambodia set to fully reopen

    Prime Minister Hun Sen concludes that the October 5-7 Pchum Ben public holiday, during which many people either flocked to their hometowns for family reunion or gathered at tourist attractions across the country, has not caused an outbreak of Covid-19. In a special address to

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Cambodia voted ‘world’s friendliest country’ in Rough Guides reader poll

    Cambodia ranked number one among the “World’s Friendliest Countries”, according to a reader poll conducted by London-based international website “Rough Guides”. Taking submissions through Twitter and Facebook, “Rough Guides”, a well-known travel agency and publisher of guidebooks, said the Kingdom “was by far the