Vimpelcom Increases Shareholding in Kazakhstan Operator

Vimpelcom's Kazakhstan subsidiary, KaR-Tel says that it has been granted radio spectrum in the GSM1800 band to compliment its existing GSM900 license. The company did not say how much it has paid for the license.

Earlier this month, Vimpelcom increased its holding in KaR-Tel by 25 percent to 75 percent, minus one share after buying the stake from Crowell Investments. The company paid US$561.8 million and has an option on the remaining 25 percent. For its part, Crowell Investments recently took out a US$350 million loan from Vimplecom - and used its shares in KaR-Tel as security.

Vimplecom originally owned the entire company, but sold half to Crowell Investments - a Cypriot company beneficially owned and controlled by certain shareholders of ATF Bank - back in April 2005 for US$175 million. ATF Bank is the fourth largest bank in Kazakhstan.

The investment was made via Limnotex Developments, which is the holding company that owns KaR-Tel.

KaR-Tel also recently signed an agreement to manage the mobile network operator, Sky Mobile -  a leading GSM operator in Kyrgyzstan. In connection with the earlier mentioned loan, Crowell also granted VimpelCom two call options over the entire issued share capital of Sky MobileĆ's parent company.

Posted to the site on 29th July 2008