Friday morning, Russia's largest telecommunications services provider Vimpel-Communications (VIP) said it agreed to acquire peer Golden Telecom (GLDN), an internet services provider, for about $4.3 billion. The transaction would help VimpelCom to transform from a mobile provider into a fully integrated telecom provider, offering a wide range of telecom services, ranging from mobile to fixed local and long-distance communications. Further, the deal would create the first fully integrated telecom service provider across Russia and the Commonwealth of Independent States or CIS. Also, VimpelCom said the deal would address high-growth adjacent markets where Golden Telecom has a significant infrastructure advantage.As per the merger agreement, Lillian Acquisition Inc., a wholly owned subsidiary of VimpelCom, would commence a tender offer on or before January 18, 2008, to buy 100% of Golden Telecom's common stock at a price of $105 per share in cash, representing about 5% premium to Golden Telecom's December 20 closing price of $100.06.The offer price of $105 per share also represents a premium of 3.5% to Golden Telecom's closing price of common stock on November 30, 2007, the business day before Golden Telecom and VimpelCom announced that they were in negotiations regarding a potential transaction, and a premium of 10.1% and 27.6% to the average closing price of Golden Telecom common stock over the previous 60 and 120 days, respectively.The Board of Directors of each of VimpelCom and Golden Telecom have unanimously approved the transaction, which is still subject to regulatory approval and other terms. Russia's telecoms minister Leonid Reiman on December 10th, noted that the deal would increase the competitiveness of both companies and they would have more opportunities to participate in large projects, even in foreign markets. As the Russian companies are now targeting European and Asian markets, a bigger company would have more advantages in such projects.Upon completion of the tender offer, Lillian Acquisition Inc. would be merged with and into Golden Telecom, and all outstanding shares of Golden Telecom common stock not tendered into the tender offer would be converted into the right to receive $105 in cash.The tender offer will expire on the twentieth business day following and including the commencement date, unless extended. The consummation of the tender offer is subject to the satisfaction or waiver of certain conditions, including a minimum of 63.3% of the outstanding Golden Telecom shares tendered into the offer.Related to this deal, UBS Investment Bank acted as financial advisor for VimpelCom, while Credit Suisse advised Golden Telecom.Vimpel-Communications provides wireless telecommunications services in Russia, Kazakhstan, Ukraine, Uzbekistan, and Tajikistan. VimpelCom's net income for the third quarter rose 70.7% to $458.05 million from $268.37 million in the prior year quarter. During the quarter, the company's active subscribers grew 18.9% to 50.69 million from 42.64 million in the same quarter of 2006. Fixed line subscribers for the quarter were 616,175. According to the company, Monthly Average Minutes of Use per User or MOU, and Monthly Average Revenue per User or ARPU, rose sequentially in all markets, including 8.9% ARPU growth in Russia.Based in Moscow, Russia, Golden Telecom provides integrated telecommunication and Internet services in Russia and other countries of the Commonwealth of Independent States.Last month, Golden Telecom posted a third quarter net income of $74.4 million or $1.84 per share, compared to $24.2 million or $0.67 per share in the year-ago quarter. Revenues for the quarter totaled $350.4 million, up 53% from previous year's revenue of $228.7 million. Throughout Russia Golden Telecom have 394,900 broadband subscribers with the average blended ARPU at about $17, net of VAT.Golden Telecom is currently trading at $103.60, up $3.54 or 3.59%. For the past 52-weeks, the stock has been trading between $43.75 and $114.85. Also, VimpelCom shares are currently up $1.24 or 3.15% at $40.58.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.