Vimpelcom acquires 90% of Sotelco

22 Jul 2008

Vimpelcom has bought a 90% stake in Sotelco, a Cambodian GSM-900/1800 licence holder, from Altimo for USD28 million, reports Reuters. ‘Cambodian market entry is an important part of Vimpelcom’s international expansion strategy particularly within [the company’s] South-East Asian cluster of operations started by our entry to the Vietnamese mobile market,’ CEO Alexander Izosimov said in a statement. Vimpelcom’s Vice President for business outside Russia said that it would take nine months to deploy and launch a network, and that the cellco will invest USD200 million over the next three or four years. It hopes to achieve around two million subscribers in that time, or roughly 20% market share. Vimpelcom has a call option to purchase the remaining 10% stake in Sotelco, currently held by a local entrepreneur, but it has chosen not to exercise it.

Cambodia, Beeline (Russia), Sotelco (Beeline)