GTEL Mobile Shareholders Complete Transaction on Financing

On May 4,GTEL Corporation and VimpelCom officially announced that they have completed the transaction on financing of their Joint Venture JSC “GTEL-Mobile”, Beeline VN brand name. The transaction assumes an additional up to US$500 million to be invested in GTEL-Mobile by VimpelCom through 2013. The first portion representing US$196 million has been paid by VimpelCom, in exchange VimpelCom increased its shareholding in the joint venture from 40 percent to 49 percent.

 

The remaining financing representing US$304 million will be provided at a later stage in return for the increase of VimpelCom’s economic stake to 65 percent, subject to satisfaction of certain performance targets by GTEL-Mobile and receipt of further regulatory approvals.

 

All proceeds from the financing will be used for GTEL-Mobile development. Alexey Blyumin, CEO of GTEL-Mobile said, “We are happy to restart active development of the Company’s operations. This transaction demonstrates a strong belief of both Shareholders in the potential of the Vietnamese market as well as the Company’s ability to succeed. We are also committed to continue providing more affordable offers and services which will bring more practical benefits for all people in Vietnam.”