Russia’s VimpelCom agrees deal to buy Armenian telecom group

Agence France Presse — English
November 3, 2006 Friday

Russian telecommunications group VimpelCom said Friday it had concluded
a deal to buy 90 percent of Armenian operator Armentel for 341.9
million euros (434.4 million dollars).

The Russian group is to buy the stake in Armentel, which controls
40 percent of the mobile market in Armenia, from semi-public Greek
company Hellenic Telecommunications Organization.

"We are pleased to announce the signing of this agreement that
will enable our entry into Armenia," said VimpelCom chief executive
Alexander Izosimov.

VimpelCom has mobile phone operations throughout Russia and Kazakhstan
and has recently acquired mobile operators in Ukraine, Tajikistan,
Uzbekistan, and Georgia.

The group is quoted on the New York and Moscow stock exchanges and
counts Norwegian telecoms group Telenor as its biggest shareholder
with a 29.9-percent holding. Russian holding company Alfa Group owns
24.5 percent.

Armentel has 400,000 mobile phone subscribers and 600,000 fixed
line users.

VimpelCom said it would complete the purchase once "certain conditions"
were fulfilled, including approval by the Armenian government.