Vimpel Communications (NYSE: VIP) acquired an additional 25% less one share of Limnotex Developments Ltd. for USD 561.8 million. Limnotex is the parent company of LLP KaR-Tel, VimpelCom’s operating subsidiary in Kazakhstan. As of January 10, 2008, Russian Alfa Group Consortium owns 44.0% of Vimpel Communications.
LLP KaR-Tel / Limnotex Developments Ltd.
The increase in VimpelCom’s stake in Limnotex implements VimpelCom’s original plan to increase its economic interest in KaR-Tel following the initial period of ownership. As a result of the exercise, VimpelCom’s share in Limnotex increased from 50% plus one share to 75%.
KaR-Tel continues to demonstrate strong financial results with good opportunity for growth.
To ensure a path of complete ownership over KaR-Tel, VimpelCom has agreed on put and call option arrangements with respect to the remaining 25% share in Limnotex which is held by Crowell Investments Limited.
The VimpelCom Group is a telecommunications operator, providing voice and data servicing, covering through a range of wireless, fixed and broadband technologies. The Group includes companies operating in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia, in territories with a total population of about 250 million people. The wireless subsidiaries of VimrelCom Group operate under the “Beeline” brand.
On February 29, 2008 VimpelCom completed a merger with Golden Telecom, a leading facilities-based provider of integrated telecommunications and Internet services in Russia and the CIS.
VimpelCom was the first Russian company to list its shares on the NYSE in November 1996. It ADSs are trader under the symbol “VIP”.
Alfa Group Consortium (www.alfagroup.org)
Founded in 1989, Alfa Group Consortium is one of Russia’s largest privately owned financial industrial conglomerates, with interests in oil and gas, commercial and investment banking, asset management, insurance, retail trade, telecommunications, technology, media, as well as other industrial-trade and special-situation investments.
On May 30, 2001, Eco Telecom Limited (called Altimo since December 2005), part of the Alfa Group of companies, purchased a strategic ownership interest in VimpelCom. As of January 10, 2008, Alfa Group owned 44.0% of VimpelCom’s voting capital stock.