Amsterdam-based VimpelCom has agreed to sell its stake in Telecel Global, which operates in Burundi and the Central African Republic, for US$100m, according to Reuters citing banking sources.
Neil Telecom, an emerging market-focused venture, will…
Amsterdam-based VimpelCom has agreed to sell its stake in Telecel Global, which operates in Burundi and the Central African Republic, for US$100m, according to Reuters citing banking sources.
Neil Telecom, an emerging market-focused venture, will reportedly buy the assets subject to closing conditions and regulatory approvals.
A spokesperson for VimpelCom declined to comment on the situation but indicated that the company announced in mid-May, during its Q1 financial results, the signing of a share purchase agreement to sell the Telecel Globe’s stake.
VimpelCom acquired the Telecel assets when it bought a majority stake in Orascom Telecom as part of its US$6bn merger with Italy’s Wind in 2011.
According to Reuters, VimpelCom is also looking to sell Telecel Zimbabwe but in a separate transaction.
Eyes Warid Telecom
Meanwhile, VimpelCom has reportedly hired Citigroup for advice on a bid for Pakistan-based mobile operator Warid Telecom.
The operator already controls the country’s largest operator, Mobilink. Norway’s Telenor, which has a 43% stake in VimpelCom, owns Telenor Pakistan, the second-biggest carrier.
Etisalat confirmed this morning that its unit Pakistan Telecommunication Company (PTCL) has also expressed interest in Warid. Goldman Sachs is reportedly advising Etisalat.
The Abu Dhabi Group fully owns Warid, the fifth-largest and smallest carrier in the country, and put it on the block last month in a sale that could reportedly fetch up to US$1bn.
A deal involving either VimpelCom or Etisalat would see the number of telcos in the country fall to four from five at the moment.
Besides, Mobilink, Warid and Telenor, the other two companies operating in Pakistan are PTCL’s Ufone and China Mobile’s Zong.
