Russia's cell phone operator VimpelCom Ltd., may buy Wind Telecomunicazioni SpA, Italy's third largest mobile telecommunications firm, and 51% of Orascom Telecom Holding (OTH), a mobile operator in Asia and Africa, from Egyptian billionaire Naguib Sawiris, a source close to VimpelCom Ltd. told Kommersant business daily on Wednesday.
The source said that VimpelCom plans to pay for the assets in both cash and shares.
As a result of the deal, Sawiris and his partners will get 20-23% of VimpelCom Ltd. voting shares. The share of Alfa Group, an investment arm of Russian billionaire Mikhail Fridman, in VimpelCom will fall to about 35% from 44.65% and the share of Norway's Telenor will fall to 27% from 29.9%.
Another source told the newspaper that the deal could be wrapped up within the next few days.
The companies declined to comment.
VimpelCom Ltd. President and Chief Executive Officer Alexander Izosimov has said that the company was interested in telecom assets in Europe, Asia, Africa and the Middle East.
The value of both companies is about $6.5 billion without debts.
"OTH and Wind have a huge debt burden. The synergy after the deal with VimpelCom Ltd. when refinancing the debt can amount to several billion dollars," the source told the newspaper.
According to the companies' 2009 accounts, OTH's net debt amounted to $5.1 billion and Wind's net debt was 8.5 billion euros.
MOSCOW, August 12 (RIA Novosti)
