Norwegian incumbent Telenor has bought 234 million Vimpelcom preferred shares from Weather Investments II for US$374.4m, thereby increasing its voting share in the Russian telco to 36.36%.
Telenor said in a statement today it has consequently withdrawn…
Norwegian incumbent Telenor has bought 234 million Vimpelcom preferred shares from Weather Investments II for US$374.4m, thereby increasing its voting share in the Russian telco to 36.36%.
Telenor said in a statement today it has consequently withdrawn its arbitration claim against Altimo and Vimpelcom, thereby ending their shareholders’ agreement concerning their Vimpelcom interests.
Telenor CEO Jon Fredrik said he was happy with the deal, which increases the company’s voting share by 11.35%, as it takes it to “approximately the same voting position as a successful outcome of the arbitration process would have achieved”.
“The withdrawal of the arbitration claim will prevent further dilution of the Vimpelcom shareholders, and it will enable a more normal corporate governance situation in Vimpelcom,” he said.
Fredrik added Telenor will work to increase its membership on the Vimpelcom board to 11 members.
Telenor acquired the shares from Weather Investments, the vehicle through which Egyptian businessman Naguib Sawiris and his family hold their interests in Vimpelcom.
Weather retains 71 million Vimpelcom preferred shares and an 18.28% voting share.
Telenor and Weather confirmed they have entered into put and call arrangements regarding the latter’s remaining preferred shares.
Altimo’s decision in June 2011 to reduce its stake in Vimpelcom to less than 25% put the Telenor/Altimo shareholder agreement at risk. Telenor subsequently launched arbitration proceedings to preserve the agreement.
Cyprus-registered investment vehicle Bertofan, linked to Ukranian businessman Victor Pinchuck, acquired 123.6 million Vimplecom shares in January this year, equalling a voting share of 5.99%.
