Russian VimpelCom Group, one of the world’s largest integrated telecommunications service operators, announced it would invest US$500 million in local mobile services operator Beeline through 2013.

VimpelCom said in a press release that it had completed the first stage of the financing plan by paying $196 million for newly issued shares in GTEL-Mobile, thereby increasing its stake in Beeline’s owner from 40 to 49 per cent. Local partner GTEL retained a 51 per cent stake in the joint venture.

The Russian company said it would assume operational management of GTEL-Mobile and the proceeds from the investment would go towards developing the company.

In the next stage, VimpelCom will invest another $304 million to increase its stake from 49 per cent to 65 per cent. The additional financing will be subject to satisfying certain performance targets by GTEL-Mobile.

Alexey Blyumin, general director of GTEL-Mobile, said the company wanted to strengthen its position in Viet Nam, one of the highest potential development countries in Southeast Asia.

“We’re confident that we will be able to develop our operations in Viet Nam…, while taking advantage of the scale and scope of the newly enlarged VimpelCom Group,” he said.

For many months, there were rumours Beeline’s foreign partner would withdraw its investment from the Vietnamese market.

A Beeline representative acknowledged their financial difficulties at the time, but rejected claims that VimpelCom were about to withdraw, saying the two sides were negotiating for more investment and a new management scheme.

Beeline was established in July 2009 and is Viet Nam’s 7th mobile network, with numbers beginning with 0199 and 099.

Source: VNS