Russian operator VimpelCom has finally completed the acquisition of Laotian mobile operator Tigo, following the resolution of regulatory issues
VimpelCom paid US$65m for a 78% stake in the Laos-based company. It also said that it spent US$23m for the…
Russian operator VimpelCom has finally completed the acquisition of Laotian mobile operator Tigo, following the resolution of regulatory issues
VimpelCom paid US$65m for a 78% stake in the Laos-based company. It also said that it spent US$23m for the repayment of debt, shareholder loan and intra-group indebtedness. The remaining 22% will be held by the Laotian government.
VimpelCom first announced it would buy Tigo, known as Millicom Lao at the time, in September 2009 but the deal needed to be approved by the government.
No further details were provided about why it took so long to get approval and the company did not respond to phone calls and emails before the press deadline.
TelecomFinance understands that VimpelCom has not appointed advisers on the deal while Millicom was being advised by Goldman Sachs.
TelecomFinance revealed in May 2009 that Millicom had mandated Goldman Sachs to arrange the sale of its businesses in Cambodia, Sri Lank and Laos.
In August 2009, Millicom reached an agreement to sell its 58.4% stake in Cambodian operation Mobitel to fellow shareholder The Royal Group for US$346m in cash.
A few months later, in December 2009, Millicom entered into an unconditional agreement with UAE-based Etisalat to offload its Sri Lankan asset for around US$155m in cash.
In a statement released yesterday, Alexander Izosimov, VimpelCom CEO, said: “South-East Asia remains an important part of VimpelCom’s international expansion strategy. The telecommunications market in South-East Asia has considerable potential, and we are confident in our ability to take advantage of the opportunities this region has to offer.”
