Vimpelcom, Russia’s second-largest mobile phone operator, may need to reassess the price it is paying for most of the telecoms assets of Naguib Sawiris, the Egyptian entrepreneur, Telenor has signaled.
The Financial Times reported that Telenor, Norway’s leading telecoms group and Vimpelcom’s second-largest shareholder, said the $6.6 billion deal could have to be revised given there was uncertainty about whether three of Sawiris’ assets would form part of the transaction.
Last week Vimpelcom outlined plans to combine with Sawiris’ private investment company, Weather Investments which owns Wind, Italy’s third-largest mobile operator, and 51.7 percent of Orascom Telecom, the Cairo-based telecoms group.
Weather is due to receive $1.8 billion in cash and a 20 percent stake in Vimpelcom worth $4.8 billion under the proposed transaction. However, Jon Fredrik Baksaas, Telenor’s chief executive, said the deal’s terms might have to be revised if the Algiers government acted on its threat to nationalize Orascom’s Algerian mobile business.