As well as buying the stake from Greek telecoms group Hellenic Telecommunications Organization SA (OTE), Russia's second largest mobile operator, best known for its Beeline brand, will take on Armentel's debt totaling around 40 million euros ($51 million).
VimpelCom, controlled by Russia's Alfa Group and Norway's Telenor, beat Russian mobile market leader MTS [RTS: MTSS] at the tender for the Armentel stake, which will give it 40% of the Armenian mobile telecommunications market. The takeover will be completed by the end of 2006, VimpelCom said.
The Armenian government ceded its right to purchase the stake from OTE on November 9.
Before receiving the authorities' approval, VimpelCom and OTE had closed the deal, worth 341.9 million euros ($438.9 million).
Armenian Communications Minister Andranik Manukyan earlier said the government will sell VimpelCom the remaining 10% stake, on the condition that the company does not attempt to monopolize the South Caucasus country's telecoms market.
Greece's OTE bought Armentel in 1997 for $142.5 million, and has since invested $300 million in the company, whose earnings in 2005 stood at 110 million euros ($140 million).
Armentel has about 600,000 fixed-line and 400,000 mobile service subscribers, and uses the GSM 900 and CDMA standards.
As well as Russia, VimpelCom operates in the former Soviet republics of Kazakhstan, Georgia, Tajikistan, Ukraine, and Uzbekistan.
