Russian mobile operator Vimpelcom is close to finalising a USD 7 billion deal to merge with most of the telecommunications assets of Naguib Sawiris, the Egyptian telecoms entrepreneur, the Financial Times reports. Under the deal, which could be announced as soon as 4 October, Vimpelcom would secure most of Sawiris' telecommunications assets in emerging markets, plus Wind, Italy's third largest mobile operator. The enlarged Vimpelcom group would be the fifth largest mobile operator in the world by number of customers, with a market capitalisation of USD 24 billion. Vimpelcom's current market value is USD 19 billion. Weather Investments, Sawiris' private investment vehicle that controls Wind and Egypt-based Orascom Telecom, could receive about USD 2 billion in cash under the deal, plus a 20 percent stake in Vimpelcom, worth USD 4.8 billion. Vimpelcom's board was due to meet on 3 October evening to approve the deal with Weather, and people familiar with the situation said the transaction could yet founder because of its complexity. According to the FT's sources, Vimpelcom could assume at least USD 12 billion of debt held by Weather. The Vimpelcom transaction is due to include Djezzy, Orascom's biggest profit generator, and Dmitry Medvedev, Russia's president, is expected to visit Algeria this week, a move that may help seal the deal. One asset that Sawiris would exclude from the Vimpelcom transaction is its 29 percent stake in a holding company that controls ECMS and Egypt's leading mobile operator Mobinil. Another asset outside the transaction would be Sawiris' mobile business in North Korea.
