Vimpel- Communications, or VimpelCom, (VIP) said it agreed to acquire Golden Telecom, Inc. (GLDN) for approximately $4.3 billion in cash.
VimpelCom expects the transaction will transform the company from a mobile-centric operator to an integrated service provider with an established position in high-growth broadband, data and mobile markets.
Further, the deal will create the first fully-integrated telecoms service provider across Russia and the CIS.
In addition, the deal will enhance VimpelCom's positioning as a market leader in integrated corporate solutions as a result of product bundling and address high-growth adjacent markets where Golden Telecom has a significant infrastructure advantage.
Pursuant to the merger agreement, VimpelCom' unit Lillian Acquisition, Inc. will commence a tender offer on or before January 18, 2008, to acquire 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 represents a premium of 3.5% to the closing price of Golden Telecom common stock on November 30, 2007, the business day before Golden Telecom and VimpelCom announced that they were in negotiations regarding a potential transaction. The price also represents 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.
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