VimpelCom Ltd. (VIP: Quote) said it agreed to sell its entire indirect 49% stake in GTEL Mobile Joint Stock Co. in Vietnam and give up operational control of GTEL Mobile. The stake will be sold to GTEL Transmit and Infrastructure Service One Member Co. Ltd., a related party of VimpelCom's Vietnamese local partner, Global Telecommunications Corp.
As per the terms of the agreement, GTEL Transmit and Infrastructure will pay cash consideration of $45 million upon satisfaction of usual conditions precedent. Upon completion of the sale, VimpelCom will have no further obligations or liabilities to Global Telecommunications Corporation or GTEL Mobile. Additionally, GTEL Mobile will discontinue the use of the Beeline trademark after a six months transition period.
As previously communicated, VimpelCom impaired its investment in Vietnam in the fourth quarter 2011, following a detailed business plan review. VimpelCom does not expect any additional losses related to the sale of the above-mentioned interest.
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by RTT Staff Writer
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