UPDATE 2-Vimpelcom finalises Vietnam jv, may expand further
(Adds details, source on Cambodian operator, analyst comment, share price)
MOSCOW, July 8 (Reuters) - Vimpelcom (VIP.N), Russia's No.2 cellphone operator, said on Tuesday it had finalised its mobile joint venture with Vietnamese state companies, which is set to become a launch pad for its Asian expansion.
Vimpelcom said it secured a 40 percent stake in the venture, called GTEL-Mobile, for an equity investment of $267 million.
Vietnam's state-owned Global Telecommunications Corporation (GTEL) and its unit GTEL TSC hold 51 percent and 9 percent of the GTEL-Mobile venture.
Vimpelcom is also considering buying a further 9 percent stake in the venture from its Vietnamese partners and has preemptive rights to do so.
"Vietnam will be a key market for us. We will be looking for further development possibilities based on the Vietnamese operations," Vimpelcom Chief Executive Alexander Izosimov told a conference call.
"In case our Vietnamese partners are interested, it is possible that we do it together," he added.
Vietnam licensed GTEL-Mobile to provide GSM-technology services in February this year, and the company now has to build telecoms infrastructure.
Vimpelcom said it estimated overall investment in GTEL-Mobile at $1.8 billion within the next five years. The company is aiming for a 15-20 percent market share in that time, or around 20 million subscribers.
"Entering the Vietnamese market is a strategically comprehensible step," said Konstantin Belov, a telecoms analyst at Uralsib Bank in Moscow.
"But it is not yet clear how the $1.8 investment will be structured and how it will affect Vimpelcom's results."
Vimpelcom's New-York listed stock rose 1.64 percent to $27.31 by 1410 GMT.
CAMBODIA NEXT?
Vimpelcom, in which Norway's Telenor (TEL.OL) and Russian billionaire Mikhail Fridman's Alfa Group have large stakes, unveiled plans to set up the venture last September and said it would seek to expand into neighbouring markets. Continued...
