VimpelCom to Acquire Golden Telecom for $4.3B

Dec. 21, 2007 7:18 AM ETVEON
Steven Towns profile picture
Steven Towns
293 Followers

Vimpel-Communications (VIP), Russia's second-largest wireless carrier, has agreed to acquire Golden Telecom (OTC:GLDN), a Russian broadband and fixed-line operator, for around $4.24B, or $105/share. The deal represents a 5% premium over Golden's Thursday Nasdaq close. The two companies disclosed they were in talks on Dec. 3. VimpelCom said it will commence a tender offer on or before Jan. 18, to acquire 100% of Golden's outstanding shares. The boards of both companies unanimously approved the transaction.

Golden will provide exposure to Russia's growing broadband market. Despite its slowing fixed-line business, Golden is the leading provider of telecom services to Russian businesses. Bloomberg reports the acquisition would create the first integrated mobile/fixed-line provider in Russia. ADRs of VimpelCom gained 4.4% to $39.38 on Thursday. Golden lost 0.15% to $100.06 during normal trading, but spiked 10% to $110.00 in thin volume late trading. VimpelCom is a 4.8% holding of Market Vectors Russia ETF (RSX)

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This article was written by

Steven Towns profile picture
293 Followers
Steven is the founder of Uguisu Research, a provider of bespoke Japanese equity research. He is also the author of 'Investing in Japan: There is no stock market as undervalued and as misunderstood' (2012). 'Investing in Japan' fills the void of information about Japanese stocks, providing a comprehensive overview of the market, challenging conventional wisdom of Japan being on its last leg, and providing insightful discussion of many key aspects to investing in Japan, including the strategies of investment funds, leading hedge funds, idiosyncrasies of the market, returns on equity, shareholder rights, and more. Link to Investing in Japan on Amazon: http://amzn.to/AENfeH

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