Russian operator Vimplecom Ltd is close to reaching an agreement on a US$7bn merger with telecoms assets owned by Egyptian businessman Naguib Sawiris, according to the Financial Times.
The transaction would include most of Sariwis’ telecoms assets in…
Russian operator Vimplecom Ltd is close to reaching an agreement on a US$7bn merger with telecoms assets owned by Egyptian businessman Naguib Sawiris, according to the Financial Times.
The transaction would include most of Sariwis’ telecoms assets in emerging markets and Italy’s third mobile operator Wind.
Weather Investment, Sawiris’ investment vehicle which owns 100% of Wind and 50% plus one share of Orascom Telecom, could receive some US$2bn in cash plus a 20% stake in VimpelCom, which has been valued at US$4.8bn.
The transaction would include Algerian mobile operator Djezzy, Orascom’s most valuable asset in the region. The Algerian authorities claim to have a right of first refusal over the mobile operator but Russian president Dmitry Medvedev is expected to discuss the transaction in his visit to Algeria this week, which could help the deal.
The agreement would however not include Orascom’s 29% in the holding company that owns Egyptian mobile operator ECMS and the mobile business in North Korea.
VimpelCom’s board was reportedly due to meet on October 3 to approve the deal.
The Financial Times says that if the deal is finalised, Vimpelcom would become the fifth largest mobile operator in the world by number of customers with a market capitalisation of US$24bn, compared to its current US$19bn.
Weather Investments is advised by EFG Hermes and Lazard, while Credit Suisse is advising on the financing. Vimpelcom is advised by Deutsche Bank and UBS, while Telenor is advised by Citigroup.
