MOSCOW—The second-biggest Russian carrier Vimpelcom (BeeLine) said its subsidiary Vimpelcom-Region, created to promote nationwide expansion, received US$175.44 million in investments. The funds were provided by BeeLine, the Alfa-Group Holding and Norwegian telecom company Telenor, which contributed US$58.48 million each.
The deal was timed to the visit of Russian President Vladimir Putin to Oslo, Norway, and was signed in the presence of the Russian leader and Norwegian Prime Minister Kjell Magne Bundevik.
The investment agreement decreased BeeLine’s share in Vimpelcom-Region from 100 percent to 65 percent, while Alfa and Telenor each acquired 17.5 percent of the regional operator. Alfa and Telenor, which hold blocking stakes in BeeLine, thus used their options to gain shares of the regional operator.
Both companies paid in cash, although initially Telenor was expected to contribute in kind with its Russian wireless assets.
Vimpelcom currently operates in 35 of the 89 Russian regions.
In November 2003, Alfa is expected to invest an additional US$58.52 million into Vimpelcom-Region, upping its stake to 30 percent and leaving 55 percent to BeeLine and 15 percent to Telenor.
