VimpelCom – VIP – Increases its stake in Russian mobile retailer Euroset to 50%

VimpelCom Ltd. (NYSE:VIP),  a leading global provider of telecommunications services, today announces that its fully owned subsidiary in Russia, OJSC Vimpel-Communications,  has acquired 0.1% of the shares of Euroset Holding N.V. (“Euroset”) to increase its ownership interest to 50% of Euroset.  The shares were issued by Euroset to OJSC VimpelCom subsidiary simultaneously with the acquisition of the other 50% of the shares of Euroset by Lefbord Investments Limited, a company owned by MegaFon and Garsdale Services Investment Ltd.

As a result of these transactions, VimpelCom and Lefbord have equal economic and governance rights in Euroset.  Previously, VimpelCom had a minority interest in Euroset with more limited governance rights.  VimpelCom expects to continue to account for Euroset using the equity method.

Commenting on announcement, Anton Kudryashov, Chief Executive Officer of OJSC VimpelCom, said: “Euroset is a strategic partner for VimpelCom and a major distribution and customer service channel. This transaction is the next step in the process of building a more efficient and sustainable operational model between VimpelCom and the largest telecom retailer in Russia, which will help us to provide  better service to our customers”.

About VimpelCom – VIP

VimpelCom (VIP) is one of the world’s largest integrated telecommunications services operators providing voice and data services through a range of traditional and broadband mobile and fixed technologies in Russia, Italy, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Cambodia, Laos, Algeria, Bangladesh, Pakistan, Burundi, Zimbabwe, Central African Republic and Canada. VimpelCom’s operations around the globe cover territory with a total population of approximately 780 million people. VimpelCom provides services under the “Beeline”, “Kyivstar”, “djuice”, “Wind”, “Infostrada” “Mobilink”, “Leo”, “banglalink”, “Telecel”, and “Djezzy” brands. As of September 30, 2012 VimpelCom had 212 million mobile subscribers on a combined basis. VimpelCom is traded on the New York Stock Exchange under the symbol (VIP).

VimpelCom Ltd. (VIP) is a holding company. The Company operates in Mobile Telecommunications Businessand Fixed-Line Telecommunications and Fixed Internet Business. The Company offers mobile telecommunications services to its subscribers, which include mobile telecommunications services under contract and prepaid plans for both corporate and consumer segments; value added and call completion services; access to both national and international roaming services; wireless Internet access and other services. It offers voice, data and Internet services to corporations, operators and consumers using metropolitan overlay network. On April 23, 2012, VimpelCom sold its indirect 49% interest in GTEL Mobile to GTEL Transmit and Infrastructure Service One Member Company Limited (GTEL Transmit). As on February 27, 2012, it held 100% interest in New Telephone Company (NTC). On November 21, 2011, VimpelCom acquired from its local partner additional 8% participatory interest in LLC (Tacom).

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.