Reinventing VimpelCom
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Portfolio and asset optimization

Consolidate and rationalize telecommunications portfolio through in-market consolidation, monetization of tower portfolio, and disposal of non-core assets.

Portfolio and asset optimization

Today many of VimpelCom's markets are fragmented and are likely to undergo a wave of consolidation. Being number 1 or a strong number 2, makes a substantial difference; therefore, to reinforce its strategic position, VimpelCom intends to focus on selective in-country consolidation within its existing footprint by acquiring either mobile and/ or fixed broadband assets. To complement this strategy, VimpelCom has disposed of certain non-core assets in Cambodia, Vietnam, Burundi, Canada, and the Central African Republic, and is in the process of closing the sale of its operation in Zimbabwe. VimpelCom carefully scrutinizes any investment in its legacy infrastructure that does not also support its data business, while aiming to ensure that it remains able to deliver a set of core traditional telephone services that fully meet customer expectations. VimpelCom has made, and intends to make in the future, selective moves to a more asset-light network model with strategic network sharing partnerships, and acceleration of monetization of its tower portfolio.

Algeria transaction

In January 2015, VimpelCom closed the sale by GTH of a 51% interest in Omnium Telecom Algeria (OTA), which operates under the brand name Djezzy, to the Algerian Nati Investment Fund, FNI. The partnership with the FNI strengthened Djezzy's position and prospects, with greater opportunities for its operations. in Algeria. The closing enabled the Company to start a full transformation program at Djezzy.

Italy tower sale

VimpelCom is making selective moves to a more asset-light network model, with strategic network sharing partnerships and targeting tower portfolio monetization across the global footprint. In 2015, VimpelCom completed a successful tower transaction in Italy: the sale of 90% of Galata for approximately USD 770 million.

Italy JV agreement

In August 2015, VimpelCom and CK Hutchison announced that they had agreed to form a joint venture of their telecoms businesses in Italy. The joint business of Wind Telecomunicazioni S.p.A. (WIND) and 3 Italia S.p.A. is expected to have over 31 million mobile customers and the strength and scale to drive competition in Europe's fourth largest telecoms market.

Zimbabwe disposal

VimpelCom has disposed of certain non-core assets and in November 2015 entered into an agreement with ZARNet (Private) Limited to sell its equity stake in Telecel Zimbabwe.

Pakistan transaction

In November 2015, VimpelCom entered into an agreement to combine its Pakistan telecom business with Warid Telecom. This combined business of Mobilink and Warid Telecom is expected to serve over 45 million mobile customers and will become the leading high-speed mobile network in Pakistan.

VimpelCom journey

2015 Milestones

  • Italian towers sale
  • Joint venture with Hutchison in Italy
  • Merger with Warid in Pakistan
  • Russian network sharing (MTS, Megafon) strategic initiatives
  • Zimbabwe sale agreement