VimpelCom Ups Stake In Kazakh Unit

July 2008 | M&A News Alert

Russian mobile services provider VimpelCom has increased its stake in Kazakhstan-based telecoms operator Kar-Tel to 75%, in a bid to increase its share of the booming Kazakhstan market. VimpelCom paid Crowell Investments, its partner in Kar-Tel, US$561.8mn to acquire the 25% minus one stake. VimpelCom had formerly owned 100% of Kar-Tel, the second largest cellular operator in Kazakhstan, which it acquired in September 2004 for US$350mn plus US$75mn in debt. It later sold a 50% minus one share to Crowell, a Cypriot company owned by shareholders of Kazakhstan's ATF Bank.

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