Vimpelcom-controlled GTH sells off Burundi, CAR operations to Econet Wireless

20 Oct 2014

Egypt-based Global Telecom Holding (GTH), a 51.9%-owned subsidiary of Russian group Vimpelcom, has announced the sale of its 100% stake in Telecel Globe Limited – which itself owns 100% of each of U-Com Burundi (leo) and Telecel-RCA of the Central African Republic – to African diversified telecoms operator Econet Wireless Group, for USD65 million subject to certain ‘post-closing adjustments’. Commenting on the sale, Andrew Davies, CFO of Vimpelcom, said: ‘We have previously outlined our Value Agenda within which our operations are reviewed to assess their future value to the Group. The decision to sell our operations in CAR and Burundi is a result of this process.’

Last month, Vimpelcom – which is US-listed and headquartered in the Netherlands but remains majority Russian-owned – and GTH jointly announced the sale of their entire interest in Canadian cellco Globalive Wireless (Wind Mobile) to its Canadian controlling shareholders and a group of investment funds for approximately CAD135 million (USD121.9 million), with the proceeds going to Vimpelcom in repayment of part of the debt owed to it.

Also, in August this year GTH approved the sale of 51% of Algerian cellco Djezzy (Orascom Telecom Algerie) to the Algerian National Investment Fund (Fonds National d’Investissement [FNI]) for USD2.64 billion, in addition to deals associated with the transaction. Pending final approval of the transaction, Vimpelcom/GTH will retain a 49% minority stake and management control of Djezzy.

Burundi, Central African Republic, Econet Global, Telecel-RCA (Centrafrique), VEON