VimpelCom Buys Ukrainian RadioSystems For $231.3M

MOSCOW -(Dow Jones)- OAO Vimpel Communications, operator of Russia's second-largest mobile phone network, Friday said it will buy Ukrainian RadioSystems for $231.3 million.

The figure is comprised of the purchase price of $206.5 million plus $24.8 million incurred by URS with prior approval from VimpelCom.

As part of the deal, equipment supplier Ericsson AB will pay $52.6 million for URS's existing network equipment, in return for orders for new equipment worth $200 million over three years, VimpelCom said in a statement.

This agreement is part of an overall deal for the Vimpelcom Group, under which it intends to purchase $500 million of equipment and services from Ericsson at an advantageous price.

As reported, the deal has been consistently opposed by Telenor ASA, Vimpelcom's second-largest shareholder. Vimpelcom said Telenor hadn't withdrawn its objections to the deal, but added that, to the management's knowledge, nor had Telenor followed through with threats of legal action to block it.

Company Web site: http//www.vimpelcom.com

-By Geoffrey T. Smith, Dow Jones Newswires (+7 095) 974 8055; geoffrey.smith@dowjones.com

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Posted to the site on 11th November 2005