Insight of VimpleCom / Orascom Merger: ProPakistani

Insight of VimpleCom / Orascom Merger
Warid Brings SMS Blocker!
Letters to Editor: Stop 5 Percent Jagga Tax on Every Reload
Ufone Introduces Full Time Mufta Offer

Posted: 05 Oct 2010 03:52 AM PDT

Insight of VimpleCom / Orascom Merger is a post from: ProPakistani

In the history of Telecom, a merger agreement between VimpleCom of Russia and Weather Investments was signed today as per a joint statement issued by both the groups, resulting into world's fifth largest mobile telecommunications carrier by subscribers with pro forma net operating revenues of US$ 21.5 billion and pro forma EBITDA of US$ 9.5 billion for the year ended 31 December, 2009.

Transaction outcome:

At the closing of the Transaction, VimpelCom will own, through Weather, 51.7% of Orascom Telecom and 100% of Wind Telecomunicazioni Italy.

Under the terms of the Transaction, Weather shareholders will contribute to VimpelCom their shares in Weather in exchange for a consideration consisting of 325,639,827 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 Weather interests in these assets, which principally comprise Orascom Telecom's investments in Egypt and North Korea, will be transferred to the current Weather shareholders. Wind Hellas Telecommunications S.A. in Greece is entirely excluded from the Transaction.

The VimpelCom shares issued to Weather shareholders at the closing of the Transaction will represent a 20.0% economic interest and a 18.5% voting interest in the enlarged VimpelCom group.

Upon issuance of the new VimpelCom shares, Telenor ASA, holding through its subsidiaries Telenor Mobile Communications AS and Telenor East Invest AS (“Telenor”), and Altimo Holdings & Investments Limited, holding through its subsidiary Altimo Cooperatief U.A. (“Altimo”), will hold 31.7% and 31.4% of the economic rights and 29.3% and 36.4% of the voting rights, respectively, of VimpelCom.

Minority shareholders in VimpelCom will represent 17.0% of the economic rights and 15.7% of the voting rights.

It is intended that Weather will designate two members to an enlarged VimpelCom board of eleven members, while Telenor and Altimo will each continue to designate three board members. Three board members will continue to be unaffiliated with any major shareholder.

The terms of the signed agreement were unanimously approved on 3 October 2010 by both the VimpelCom Supervisory Board and the Weather Board of Directors.

Estimated timetable

Under the share sale and exchange agreement, final board and shareholder approvals for the Transaction are required to be obtained from both companies. It is expected that the VimpelCom EGM will occur before the year end with receipt of regulatory approvals and completion of the Transaction expected in Q1 2011. The demergers should be completed by Q3 2011.

VimpelCom's revenue base will be significantly diversified. Based on 2009 pro forma revenues, the existing operations in Russia will represent 35% and Wind Italy will represent 34% of the combined company. The group will also have an attractive mix of developed and emerging market assets in Eastern Europe, Asia and Africa. The combined group will have a balanced business risk profile enhancing its ability to pursue profitable growth, including in mobile data services.

Financing

The cash consideration of US$1.8 billion will be financed from existing cash balances and new debt facilities.

In addition, the Transaction will trigger certain change of control provisions of existing debt in the Weather group which might require the refinancing of some of these debt instruments. VimpelCom and Weather expect to launch the required financing process including solicitation of consents where appropriate in October/November. The companies have received highly confident letters from financing banks for the planned refinancing.

Total incremental debt to be raised after taking account of waivers of existing debt is expected to be in the range of approximately US$2.0 to 2.5 billion. This will bring post transaction net debt up to US$24 billion.

The financing is expected to continue to utilize ring fenced financing structures at the Wind Italy and Orascom Telecom level, with part of Orascom Telecom's debt at the holding company level being refinanced via an inter-company loan from VimpelCom.

All of Orascom Telecom's subsidiary debt is expected to remain in place. Part of the refinancing requirements might also be met from disposal of non-core assets.

VimpelCom's financial position will remain strong following closing of the Transaction. VimpelCom's pro forma net debt to LTM EBITDA ratio as at 30 June, 2010 is up to 2.5 times post transaction and is anticipated to decrease rapidly over the following years.

Warid Brings SMS Blocker!

Posted: 05 Oct 2010 02:59 AM PDT

Warid Brings SMS Blocker! is a post from: ProPakistani

After the recent launch of Warid call block service, Warid now brings the SMS blocking facility to block all those annoying and unwanted SMS.

Simply follow the instructions provided below and get control over your incoming SMS traffic:

Procedure:

In order to block SMS from a particular number just send "block"<space>0321xxxxxxx in a SMS to 430.
The request shall be logged at Warid’s end and will be verified within 24 hours in case of an On-net SMS blocking request or 48 hours for an Off-net SMS blocking request.
Once the request has been verified the obnoxious user shall be warned the first time.
In case of another complaint to the same number the outgoing SMS facility shall be barred.
You will be informed regarding the action taken against the complaint after your request has been processed from our end.

Charges:

Charges of Rs. 1+tax per SMS shall be applicable.

It is interesting to note here that Warid has introduced Call and Sms block as separate services with separate charges.

Letters to Editor: Stop 5 Percent Jagga Tax on Every Reload

Posted: 05 Oct 2010 12:49 AM PDT

Letters to Editor: Stop 5 Percent Jagga Tax on Every Reload is a post from: ProPakistani

Stop 5 Percent Jagga Tax on Every Reload

Dear Editor,

Today, I am trying to put your keen attention towards the issue of “5%” jagga tax on recharge and on easyloads other than 10% Govt. Tax.

Cellular companies had announced 5 percent service charges to improve their services, but alas we don't see any good there – rather services are undergoing degradation as time is passing.

There’s no concrete justification for such issue, I need a free legal support to fight against such Zardari Tax.

Asher

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Ufone Looting its Customers

Dear Sir,

Ufone claims that it is providing very best services but in reality this company is looting to its customers by charging a service that comes free of cost usually.

Zong and Telenor is providing SMS and call details of prepaid numbers free of charge but Ufone is charging 12 rupees for checking one instance of your calls and SMS details.

Ufone started its 'self care portal' with option to check SMS and call history details for free. But soon it has imposed charges on this service to make money.

Moreover, you can't check call details of more than 7 days, means you will have to spend Rs. 12 for call details of each week.

Regards
Abdul Rehman

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Letter written to ProPakistani reflect the thoughts and feelings of readers. ProPakistani may or may not, partially or fully, agree with content of these letters.

You can write to us by visiting this page or email us here: letters [a] propakistani.com (remove spaces and replace [a] with @ )

Ufone Introduces Full Time Mufta Offer

Posted: 04 Oct 2010 09:59 PM PDT

Ufone Introduces Full Time Mufta Offer is a post from: ProPakistani

Ufone has responded to Mobilink and Telenor against their recent unlimited calling offers on 3 on-net numbers at fixed rental of 6.99 and 9.99 plus taxes respectively.

Ufone has today offered this package called "Full Time Mufta Offer", for its Uth customers, which will allow:

9 AM to 12 AM: Calls to all Uth numbers are free after first minute
12 AM to 9 AM: All calls to all Uth numbers are absolutely free (free calls will be charged 1 paisa per call)

Apparently, its a great offer, the only glitch is that both calling and receiving parties should be Uth subscribers.

Moreover, calls in the day are not free – though they are free after first minute, but liberty of unlimited free calling isn't there. However, unlike Mobilink and Telenor, Ufone is offering freedom to call all Uth subscribers at this low rate.

It is understandable that Ufone couldn't offer Free Unlimited calling to all Uth numbers – as Ufone can’t afford to chock its network.

Daily Rental:

Rs. 2 plus tax

How to Avail Full Time Mufta Offer:

dial *23# to get this offer working for you!
One time Subscription Charges: Rs. 20 plus tax

Terms and Conditions:

To subscribe this offer, one time subscription charges are Rs.20 + Tax
Daily charges are Rs. 2 + Tax
Calls to all Uth package, Uth Package Non Stop Offer and Uth Package Full Time Mufta Offer are free after the first minute from 9am to midnight .Calls from midnight till 9 am are absolutely free.
From mid night to 9am all free calls will be charged 1paisa per call
Maximum call duration is 59:59
Limited time offer