Project start: 2001

Description of the Company:
The telecommunications market leader in Russia and Kazakhstan, it provides mobile communication services under the brand "Beeline". The Company's license zone covers practically the whole of Russia. The Company holds the largest market share in the most promising and profitable Moscow region. VimpelCom is the first Russian company whose shares are listed on the New York Stock Exchange (VIP ticker tape).

Investment Appeal / Investment Idea of the Project:
The leader of the rapidly growing telecommunications industry.
It was a favorable target for strategic investment because of the low price of technology shares in 2000.
Strong partner (Norwegian telecommunications holding company Telenor).

Role of the Investor:
The VimpelCom shareholding (now amounting to 32.9%) was one of Alfa-Group’s first investments in telecommunications; efficient participation in the development of the operator; attraction of large first-class foreign financing for the creation of the Company’s regional networks. A1 Group’s investment and management decisions formed the basis of VimpelCom strategy.
By the time of the project end the priority task was completed through the extension of the license coverage over practically the whole territory of Russia. During the three years of our participation in the project, VimpelCom business growth rates were the highest in the industry: its user base increased over 16 times, the number of networks in the Russian Federation increased from five to 70, market capitalization increased by 9.25 times and the price of shares on the NYSE rose 6.5 times.
Alfa-Group then concentrated its telecommunications assets in the specialized company Altimo, to which the shares in VimpelCom were transferred.