Vimpelcom vacates Vietnam

23 Apr 2012

Vimpelcom has agreed to sell its entire 49% stake in GTel Mobile and give up operational control of the Vietnamese wireless operator, the company announced in a statement. The shareholding will be sold to GTEL Transmit and Infrastructure Service One Member Company Limited, a related party of Vimpelcom’s Vietnamese partner, Global Telecommunications Corporation, which will pay cash consideration of USD45 million upon satisfaction of usual conditions precedent. Upon completion of the sale, Vimpelcom said it will have no further obligations or liabilities to Global Telecommunications Corporation or GTEL Mobile, while the latter is required to discontinue the use of Vimpelcom’s ‘Beeline’ trademark after a transition period of six months. Jo Lunder, CEO of Vimpelcom, commented: ‘We have previously outlined our Value Agenda, within which all of our operations are reviewed to assess their future value to the Group. The decision to dispose of our interest in GTEL Mobile is a result of this process, which focuses on allocating capital to those markets where we see the best opportunities to generate shareholder value.’ TeleGeography’s GlobalComms Database states that GTel Mobile had a mobile customer base of 2.96 million at the end of 2011, corresponding to share of just 2.2% of Vietnam’s overcrowded and highly competitive mobile market. Following a detailed business plan review, Vimpelcom impaired its investment in Vietnam in the fourth quarter of 2011.

Vietnam, GTel Mobile (Gmobile), VEON