VimpelCom CEO Jean Yves Charlier has confirmed that it is considering an IPO as one way to monetise its tower portfolio as the company reports a US$1bn net loss amid investigations into its conduct in Uzbekistan.
VimpelCom (NASDAQ:VIP) CEO Jean Yves Charlier has confirmed that the operator is considering an IPO as one way to monetise its tower portfolio.
Speaking on VimpelCom’s Q3 results call, Charlier reiterated the company’s commitment to an asset-light model but said a disposal would not happen “overnight”.
“We will look at an IPO, either independently or with a partner, I wouldn’t rule it out,” Charlier said.
He tempered his comments by saying that VimpelCom would not “want to contemplate a long term position in a towerco”.
A valuation would be dependent on the performance of VimpelCom’s subsidiaries in the various different markets where it owns its sites, so it was difficult to put a per tower value on the portfolio, Charlier said.
The CEO added that a process for the towers was a project for the medium to long term and that VimpelCom would not rush as it wanted to extract maximum value from the infrastructure.
The company mandated the Moscow branch of BofA Merrill Lynch to advise on a tower sale in the summer, and is reported to have subsequently engaged UBS and boutique TAP Advisors as well.
It has previously been reported that VimpelCom was specifically looking at options for its 50,000 towers across Russia, Ukraine, Kazakhstan, Armenia, Kyrgyzstan, Uzbekistan, Tajikistan and Georgia, which could be worth upwards of US$5bn.
Charlier’s latest comments came as his company recorded a US$1bn net loss for the third quarter, largely down to it setting aside US$900m for potential liabilities from investigations by the SEC, DOJ and OM relating to its business in Uzbekistan.
It disclosed the provision earlier this week, leading 33% shareholder Telenor, which is looking to sell its stake, to say that it was now even more concerned about the outcome of the investigations.
On 4 November VimpelCom’s former CEO Jo Lunder was arrested by Norwegian police relating to the corruption allegations.
A week prior, Norway’s government forced the resignation of Telenor’s chairman after receiving new information about corruption allegations against VimpelCom in Uzbekistan.
