MOSCOW and NEW YORK, July 8 NY-VimpelCom-jnt-vent
MOSCOW and NEW YORK, July 8 /PRNewswire-FirstCall/ -- Open Joint Stock
Company "Vimpel-Communications" ("VimpelCom" or the "Company") (NYSE: VIP)
announced today that it has signed a Joint Venture and Shareholders Agreement
(the "Agreement") to establish a mobile telecommunications joint venture in
Vietnam under the name of GTEL-Mobile Joint Stock Company (the "Joint Venture
Company"). The other participants in the Joint Venture Company will be Global
Telecommunications Corporation ("GTEL"), a Vietnamese state-owned enterprise
and GTEL TSC, a subsidiary of GTEL.
Subject to the conditions contained in the Agreement and in accordance
with Vietnamese investment laws, VimpelCom will receive a 40% interest in the
Joint Venture Company in consideration for an equity investment of US$267
million. GTEL and GTEL TSC will have an equity interest of 51% and 9%,
respectively, in the Joint Venture Company. The parties' obligations under
the Agreement remain subject to receipt of regulatory approvals, including
approvals required for the legal formation of the Joint Venture Company and
its receipt of the GSM license and frequencies.
Alexander Izosimov, CEO of VimpelCom said, "With a population of 86
million and a fast growing economy, the Vietnamese market holds great promise
for VimpelCom and we believe the GTEL-Mobile growth dynamics make it an ideal
place for us to begin building our international growth platform. We are very
happy that this first step in the realization of our international growth
strategy has successfully materialized. We are also pleased to be working
with such a strong partner as GTEL and we value their professionalism,
expertise and understanding of the Vietnamese market. This is a
first-of-a-kind transaction in Vietnam, so we will work alongside our partners
to ensure that we build a strong business to capture the revenue
opportunities."
This press release contains "forward-looking statements", as the phrase is
defined in Section 27A of the Securities Act and Section 21E of the Exchange
Act. These statements address the anticipated investment amounts in the joint
venture and the intended benefits to VimpelCom. These statements are based on
management's best assessment of the joint venture transaction and involve
risks and uncertainties. The effectiveness of the obligations in the Agreement
remain subject to the receipt of regulatory approvals, including approvals for
the formation of the joint venture and its receipt of a GSM license and
frequencies. There can be no assurance that the necessary regulatory approvals
and the GSM license will be obtained. Additionally, the outcome of the joint
venture may differ materially from these statements as a result of unforeseen
developments from competition, governmental regulations of the wireless
telecommunications industry, general political uncertainties and general
economic developments in Vietnam and other factors. Certain factors that
could cause actual results to differ materially from those discussed in any
forward-looking statements include the risks described in the Company's Annual
Report on Form 20-F for the year ended December 31, 2007 and other public
filings made by the Company with the United States Securities and Exchange
Commission, which risk factors are incorporated herein by reference. VimpelCom
disclaims any obligation to update developments of these risk factors or to
announce publicly any revision to any of the forward-looking statements
contained in this press release, or to make corrections to reflect future
events or developments.
SOURCE Vimpel-Communications
