The other owners of the joint venture will be the U.S. Millennium Global Solutions Group, Inc. and a company owned by the Ministry of Public Security of Vietnam.
"Under the agreement VimpelCom is to invest $1 billion in the development of GSM-standard mobile communications in Vietnam within the next few years and provide technical and operational expertise to the JV," the press release said.
VimpelCom, best known for its Beeline brand, will be a minority voting share holder in line with Vietnamese investment regulations, however, the company's $1 billion investment will ensure its place as an influential decision maker and "hold a majority of the economic interest" in the JV's operations.
"We are very excited about this transaction, our first expansion outside of Russia and the CIS. Vietnam is a very attractive market, with a growing population of approximately 85 million people and mobile penetration of approximately 32%. The country has joined the WTO and the economy is developing rapidly. Overall we view this as a great growth opportunity for VimpelCom and its shareholders," Alexander Izosimov, the VimpelCom CEO said.
The JV establishment and the agreement terms will be discussed further and are still under negotiation by the parties, the press release said.
The VimpelCom Group includes cellular companies operating in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia, and Armenia. The company license covers territory with a population of 232 million.
The Norwegian Telenor holds 26.6% of voting shares in VimpelCom, while Altimo, previously Alfa Telecom, holds a 42.4% voting stake.
