Telecommunications services company VimpelCom Ltd (NYSE: VIP) announced on Monday that it will sell its entire indirect 49% stake in its Vietnamese joint venture with GTEL Mobile Joint Stock Company (GTEL Mobile).
The company has signed an agreement to sell its interest in GTEL Mobile to GTEL Transmit and Infrastructure Service One Member Company Limited for a purchase price of USD45m, as well as give up operational control of GTEL Mobile.
After a six-month transition period to the new owner, GTEL Mobile will cease using VimpelCom's Beeline brand, the vendor said.
Upon completion of the deal, VimpelCom will have no more obligations to Global Telecommunications Corporation or GTEL Mobile and expects no further losses from the disposal, it added.
TCP will make GTEL
a wholly owned subsidiary in the near future, boosting its subscriber numbers to 47 million.
Some employees at GTEL
, which is being integrated into GTE California, will see wage increases of between 11 percent and 18 percent under the new contract.
Gtel Mobile will become the seventh mobile network operator in Vietnam and is a joint venture between GTEL