VimpelCom announces completion of Wind Telecom acquisition

Russia’s VimpelCom says that it has completed the merger with Egypt’s Wind Telecom, which gives it 51.7 per cent of Orascom Telecom and the entire ownership of Wind Italy.

The combination of VimpelCom and Wind Telecom creates the world’s sixth largest mobile telecommunications provider by number of subscribers with operations in 20 countries. Total mobile subscriber base reached 181 million as of end-December, 2010.

VimpelCom’s corporate headquarters are in Amsterdam with centralised corporate functions, including corporate finance, tax, accounting & control, treasury, legal, regulatory affairs, human resources, public relations, investor relations, M&A, commercial operations and technological strategy/procurement function.

Khaled Bichara, former group CEO of Wind Telecom, has been appointed to the newly created position of president and chief operating officer, with responsibility for the company’s business units, as well as for the newly formed commercial and technology functions.

The US$1.495 billion cash consideration for the transaction was financed from existing cash balances and new debt facilities.

VimpelCom continues to utilise ring fenced financing structures at Wind Italy. Part of Orascom Telecom’s debt at the holding company level is being refinanced via an inter-company loan from VimpelCom. All of Orascom Telecom’s subsidiary debt remains in place.

Management plans to consolidate financial results of Wind Telecom effective April 15, 2011.