Kyivstar And Beeline To Close Merger Deal By 2014

kyivstar-beelineKyivstar and Beeline communications operators (Ukrainian RadioSystems and Golden Telecom companies) plan to close the merger deal by 2014, Kyivstar President Ihor Litovchenko, the manager of VimpelCom Ltd business unit in Ukraine, has told a news conference.

The companiew will be merged in several stages.

On the first stage (until the end of 2010) Kyivstar will open national roaming for Beeline subscribers to enable them communicate under the Beeline tariffs within the united network.

Then the merger process means combining networks (in 2011), forming a single network of subscriber service centres, call centres, and also uniting the management and operational teams.

Litovchenko introduced the top managers of the merged company: Taras Parkhomenko appointed the director of the marketing department at the merged company (previously led this division at Kyivstar), Vitalii Vorozhbit will work underneath (grassroots segment of the market) and Andrii Milinevskyi, who will be in charge for the corporate market (former director-general at Beeline).

Apart from this, Kjersti Wiklund is appointed Vice President, Chief Technical Officer (occupied the same position at Kyivstar), Andrew Simmons appointed Chief Financial Officer (occupied the same position at Kyivstar).

Kyivstar President says the amalgamated company will work under the brands Kyivstar, DJUICE and Kyivstar Business.

Kyivstar President added, all the existing Beeline offers to subscribers would exist into 2011.

“There will be no such brand as Beeline on the Ukrainian market in 2012,” Litovchenko said.

VimpelCom Ltd will be providing services under the Kyivstar brand name only in Ukraine, he announced, in all other countries under the Beeline brand name.

The Beeline brand will be used as a niche offer for tourists from Russia and other CIS countries, Parkhomenko stressed in his turn.

Andrii Osadchuk, the director of Kyivstar department for regulatory legal support, says that the legal strategy of the companies’ merger supposes their amalgamation into one corporate entity on the basis of Kyivstar.

He remarks, Ukrainian RadioSystems and Golden Telecom will be liquidated but this process will take several years.

As Ukrainian News earlier reported, on October 5, 2009, the Altimo company (Russia) and the Telenor telecommunications company (Norway) agreed to merge Kyivstar and VimpelCom to create a new cellular communications operator, VimpelCom Ltd. (Bermuda islands), to provide integrated cellular communications services in Russia, Ukraine, and other member-countries of the Commonwealth of Independent States, as well as in Georgia, Vietnam, Cambodia, and Laos.

The Antimonopoly Committee of Ukraine on October 19 renewed its consent given in March 2010 to the merger of VimpelCom (Russia) and the Kyivstar.

The Antimonopoly Committee suspended its permission for the merger of VimpelCom and the Kyivstar on April 22 after Astelit provided additional facts in support of its request to delay the merger.

Astelit later withdrew its request.

Despite the withdrawal, the Antimonopoly Committee decided to review its March decision to approve the merger of the companies without additional conditions.

Kyivstar and Beeline registered a net profit of UAH 339 million for the April-to-June quarter.

Starting from the second quarter VimpelCom in its accounting statements decided to render consolidated financial results of the Ukrainian communications operators that enter the company.

According to the Top 100 Business Leaders of Ukraine ranking, Ukrainian RadioSystems took the sixth place in the Telecommunications section with a net revenue indicator of UAH 0.97 billion for 2008, Golden Telecom the seventh in the Telecommunications section with a net revenue indicator of UAH 607.4 million for 2008.

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