Russia’s VimpelCom, whose interests include the IPTV service Beeline TV, has merged with Weather Investments. In doing so, it has created what is effectively the world’s fifth largest mobile operator in terms of subscriber numbers.
Upon completion of the transaction, VimpelCom will own, through Weather, 51.7% of Orascom Telecom and 100% of Italy’s Wind Telecomunicazioni. The merged company will have a presence in 20 countries in Europe, Asia, Africa and North America, with a combined population of around 850 million people.
Its net operating revenue will be $21.5 billion (€15.7 billion) in the basis of prom forma results for the year ended December 31, 2009. Adjusted EBITDA is based on pro forma 2009 results of $9.5 billion and EBITDA margin for the year 2009 of around 44%.
Commenting on the deal, Kommersant says Weather will become the third largest shareholder in VimpelCom after Alfa-Group, Altimo and Telenor, with a 20% economic and 18.5% voting stake.