Vimpelcom not planning to sell Italy's Wind yet, looking to raise value
LONDON. Jan 29 (Interfax) - Vimpelcom Ltd. is not in a rush to make a decision on what to do with Italian operator Wind Telecomunicazioni, which accounts for the bulk of the telecom group's debt.
The company remains attractive in the long-term and it would be wrong to sell it now, Vimpelcom CEO Jo Lunder said Tuesday at a meeting with investors.
Vimpelcom believes it will ultimately manage to increase the value of the Italian business for its shareholders, but it needs time, patience and long-term vision, Lunder said, adding that this was a very strong asset.
He said Wind's operating results remain strong and the negative trend in financial indicators is the result of market pressure, not the deterioration of the company itself.
Vimpelcom is considering three or four options for what to do with Wind and is studying the European capital market with this in mind, Lunder said. It was reported earlier that the possible options included a merger with another major player in Europe, the sale of the company, the formation of a partnership and various debt refinancing plans. Vimpelcom has not yet decided on an option.
Asked by analysts how long it will take to decide Wind's fate, Lunder said it could take a year or six months, but the most important thing is that the decision must meet the interests of Vimpelcom's investors.
The market situation is not currently suitable for the sale of the company, Lunder told investors.
The Financial Times, citing sources, reported at the end of last year that Vimpelcom was, among other options, considering selling Wind and had met with representatives of Hutchison Whampoa, Italy's fourth largest mobile provider by number of subscribers. Earlier there were reports that Egyptian billionaire Naguib Sawiris, who sold a stake in Wind to Vimpelcom in 2011 along with this telecoms holding company, was interested in the Italian company.
The Italian business will remain as it is for now, Lunder said on Tuesday, adding that Vimpelcom believes the situation on the Italian market will improve, which will create new opportunities for building Wind's value.
