MOSCOW, Jan 18 (Prime-Tass) — Russia’s second-largest mobile operator VimpelCom has purchased two mobile operators in Uzbekistan, VimpelCom said in a press release Wednesday.

VimpelCom signed an agreement with Germanos SA, Panos Germanos and the European Bank for Reconstruction and Development to purchase Unitel LLC, the second largest cellular operator in Uzbekistan, for U.S. $200 million plus assumption of debt. Unitel is expected to have approximately $13.4 million in debt at closing, VimpelCom said, adding that the closing of the purchase of Unitel is subject to the fulfillment of certain conditions, including necessary governmental approvals, and is expected to occur by mid-February.

VimpelCom also purchased 100% of Bakrie Uzbekistan Telecom LLC, or Buztel, the fourth largest GSM operator in Uzbekistan, from Altimo for $60 million plus the assumption of approximately $2.4 million in debt. Altimo, a subsidiary of Russia’s Alfa Group, is also a key shareholder in VimpelCom with a 32% stake.

VimpelCom said that it plans to merge Buztel into Unitel, thus creating a single, combined company in Uzbekistan. Both Unitel and Buztel hold national GSM 900 and 1800 licenses.

“Recognizing the benefits of local expertise when entering a new country, VimpelCom intends to find an Uzbek partner as a minority shareholder in the planned combined company,” VimpelCom said in the press release.

Unitel currently serves approximately 364,000 subscribers, representing, according to the company’s estimates, a 31% market share in Uzbekistan, VimpelCom said, adding that the acquisition of Buztel would provide VimpelCom with access to the widest GSM frequency spectrum available to any GSM operator in Uzbekistan, which, in addition to the frequency resource of Unitel, should provide for significant savings on capital expenditures for the combined company.

“We are very pleased to announce these acquisitions in Uzbekistan, a large market that we believe has the potential for substantial growth. VimpelCom’s entry into Uzbekistan will bring our licensed population coverage to a total of over 230 million people. This is the fourth market outside of Russia that VimpelCom has entered as the company continues to execute its CIS growth strategy,” VimpelCom’s CEO Alexander Izosimov was quoted as saying in the press release.

With a population of approximately 26 million, Uzbekistan has the third largest population in the CIS behind Russia and Ukraine and had a mobile penetration rate of only 4.5% at the end of 2005.

VimpelCom is a leading international provider of mobile telecommunications services in Russia, Kazakhstan, Ukraine, Tajikistan and Uzbekistan. The VimpelCom Group’s license portfolio covers approximately 232 million people. VimpelCom’s license covers 78 regions in Russia (with 136.5 million people, representing 94% of Russia’s population) as well as the entire territories of Kazakhstan, Ukraine, Tajikistan and Uzbekistan.

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