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Russian Firm Claims ArmenTel Takeover

AP

Russian mobile operator Vimpel-Communications said Friday it agreed to buy a 90 percent stake in Armenia Telephone Co. (ArmenTel) from Greece’s Hellenic Telecommunications Organization SA for 341.9 million euros ($436.3 million) plus about 40 million euros (US$51 million) in debt.

ArmenTel has about 600,000 fixed-line and 400,000 mobile subscribers.

Completion of the deal is subject to the fulfillment of certain conditions, including approval by the government of Armenia.

“With approximately 40 percent mobile market share, ArmenTel occupies a strong position in the Armenian market and we will work to enhance this position,” said VimpelCom Chief Executive Alexander Izosimov.

VimpelCom operates phone services in Russia and Kazakhstan and recently acquired cellular operators in Ukraine, Tajikistan, Uzbekistan, and Georgia. The VimpelCom Group’s cellular license portfolio covers a territory with a population of about 237 million.

http://www.armenialiberty.org/armeniareport/report/en/2006/11/0159E9D8-F5AC-4EEF-8391-3090E4EC0BB2.ASP

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