Vimpelcom Mandates Six Banks to Arrange $4 Billion Loan for Sawiris Deal

Strategic Insights -

Vimpelcom Ltd, a holding company formed in April this year to combine Alfa-Group's and Telenor's Russia- and Ukraine-based cellular assets, has issued a mandate to six banks to arrange a bridge loan of $4 billion to finance its acquisition of Weather Investments, owned by Egyptian billionaire Naguib Sawiris. The loan, with a tenor of 18 months, will be refinanced with a Eurobond issue scheduled for next year. The deal, worth an estimated $6.6 billion, would make Vimpelcom the world's fifth-largest mobile communications firm by subscribers.

Key Takeaways:

  • Vimpelcom has mandated six banks to arrange a bridge loan of $4 billion to finance its acquisition of Weather Investments.
  • The loan will have a tenor of 18 months and will be refinanced with a Eurobond issue scheduled for next year.
  • The deal is worth an estimated $6.6 billion, not including debt, and would make Vimpelcom the world's fifth-largest mobile communications firm by subscribers.
  • The deal's success is contingent upon various factors, including the resolution of outstanding tax debts of $230 million at Djezzy, a prime asset in the deal.
  • Altimo's CEO, Alexei Reznikovich, has stated that the company will do everything in its power to carry the deal through successfully.
  • The fate of the deal is expected to be resolved within two months.

Statistics:

  • $4 billion: The size of the bridge loan to be arranged by the six banks.
  • 18 months: The tenor of the bridge loan.
  • $6.6 billion: The estimated value of the deal, not including debt.
  • 51.7%: The percentage of Orascom Telecom owned by Weather Investments.
  • 44.7%: The percentage of Vimpelcom owned by Altimo.
  • $230 million: The outstanding tax debt at Djezzy, a prime asset in the deal.

Sources:

  • Interfax, Dec 13.