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VimpelCom Raises Funding for Orascom Purchase

VimpelCom Raises Funding for Orascom Purchase

­Russia’s VimpelCom is seeking to raise US$4 billion as a bridging loan to fund its bid for Orascom Telecom Holding and Wind Telecomunicazioni, Reuters reported, citing senior bankers. The financing will be replaced with bonds at a later date, according to the report.

The loans will be used to fund the cash component of the acquisition for about $2 billion and to refinance $2 billion of existing VimpelCom debt, Reuters said. A group of three to six banks is expected to arrange the deal, according to the report.

“VimpelCom is about to get a $4 billion bridge loan to bond issues – its extremely aggressively priced for what it is,” one of the senior bankers close to the deal said.

Under the terms of the deal between the two companies, VimpelCom will own – through Weather – 51.7% of Orascom Telecom Holding and 100% of Wind Italy. Under the terms of the Transaction, Weather shareholders will contribute to VimpelCom their shares in Weather in exchange for a consideration consisting of newly issued VimpelCom common shares, US$1.8 billion in cash and certain assets that will be demerged from Orascom Telecom and from Wind Italy.

The deal is valued at around US$6.8 billion in stock and cash.

On the web: Reuters

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