
Vimpelcom's main office in Moscow. (Photo: Reuters)
Russian company Altimo expects to conclude its VimpelCom deal to buy Weather for $6.6 billion only if VimpelCom successfully refinances its debt in the first half of 2011, Altimo CEO Alexey Reznikovich told Reuters.
VimpelCom is set to acquire Weather from Egyptian businessman Naguib Sawaris so to expand into new markets, establishing itself as the world’s fifth largest telecommunication company.
The company is currently in talks with various banks in order to finance its standing debt of $24 billion, which the company will incur if it merges with the Egyptian Orascom Telecom and Wind, both of which are owned by weather.
VimpelCom is about to mandate a bank to manage a $4 billion loan to finance the cash share of the deal, and then refinance another $2 billion.
“If the deal was successful, the debt- profit ratio before deducting the interest, taxes and depreciation will be equal to two, which is a very normal rate” Alexey added. The total company profits are expected to reach $10 billion before interest, taxes, and depreciation, which will enable the company to pay its debt soon.
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