Telenor Values Kyivstar at $8 bn.

The valuation was announced as part of Telenor’s presentation of Kyivstar’s 2Q06 results. The company increased sales in 2Q06 by 57% yoy and EBITDA by 75% yoy. Kyivstar increased its customer base by 71% yoy. Alexander Paraschiy: Telenor’s valuation of Kyivstar is more than two times larger than the market value of Russian mobile operators, on a per-customer basis. Three months ago Telenor was seriously considering a share-swap offer from Russia’s VimpelCom that valued Kyivstar at $5 bn.

                                                                                         
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                    EV, USD mln      Customer Base, mln   Base Growth, yoy   EV/Customers
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Kyivstar              8.00               16.0                          71%                     0.50
MTS                 14.15               66.7                          96%                     0.21
VimpelCom         11.15               50.8                          51%                     0.22
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Source: company data, Bloomberg, Concorde Capital calculations