VimpelCom, Russia's second largest mobile operator may be interested in Millicom’s Asia assets in Cambodia and Sri Lanka

By Maria Ermakova, 9th July 2009, Bloomberg

OAO VimpelCom, Russia’s second- largest mobile-phone company, may be interested in Millicom International Cellular SA’s assets in Southeast Asia, said Ksenia Korneyeva, a company spokeswoman.

“Millicom’s Asian assets are potentially interesting for VimpelCom, because they are based in the region that VimpelCom views as the main strategic area for international expansion,” Korneyeva said in a telephone interview from Moscow today.

Millicom, based in Luxembourg, said last week that potential suitors had submitted “expressions of interest” for its Asian assets and that the company hired Goldman, Sachs & Co. as an adviser. Millicom is considering selling its businesses in Cambodia, Laos and Sri Lanka separately or together, Chief Financial Officer Francois-Xavier Roger said July 7, declining to name any potential bidders.

VimpelCom began operations in Cambodia in May and plans to begin operations in Vietnam this month. The Moscow-based company may expand further in Southeast Asia to tap new markets beyond Russia where the number of subscribers exceeds the population, Chief Executive Officer Boris Nemsic said June 6.

To contact the reporter on this story: Maria Ermakova in Moscow at mermakova@bloomberg.net