Here's an intersection of two big trends: emerging economies producing globally competitive companies, and the burgeoning market for telecom services in the developing world. Russia's Vimpel Communications is spending $267 million for a 40% stake in a
mobile-communications joint venture with Global Telecommunications Corp., a Vietnamese state-owned firm, and its subsidiary GTEL TSC.
VimpelCom says investment in the JV, GTEL-Mobile Joint Stock Co.,
could reach $1.8 billion within the next five years. The partners are aiming for a 15% to 20% share of the Vietnamese market in that time, according to Reuters. Global Telecommunications will have a 51% stake in the JV, which is subject to regulatory approvals.
On Friday, VimpelCom increased its
stake in Kar-Tel, the second-largest cellular operator in Kazakhstan, to 75% for $561.8 million. VimpelCom owned all of Kar-Tel in 2004 and sold a 49.9% stake in it to Crowell Investments Ltd., which may sell the entire stake back to VimpelCom. Earlier this year, VimpelCom completed its $4.7 billion acquisition of broadband firm Golden Telecom Ltd. TheDeal.com reported it was the
first time in seven years a Russian corporate buyer purchased a U.S.-listed company.
VimpelCom is owned by Russian tycoon Mikhail Fridman's Alfa Group and Norway's Telenor ASA. -
Baz HiralalVimpel establishes telecom JV in VietnamVimpelCom pays $562M to up Kazakh unit stakeTelecom deals from around the globe
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