Russian billionaire Mikhail Fridman’s Altimo has secured a US$3.24bn term loan with Sberbank, partly to fund the conversion of preferred shares in VimpelCom into common stock.
Altimo, the telecoms investment arm of the Alfa Group Consortium, announced…
Russian billionaire Mikhail Fridman’s Altimo has secured a US$3.24bn term loan with Sberbank, partly to fund the conversion of preferred shares in VimpelCom into common stock.
Altimo, the telecoms investment arm of the Alfa Group Consortium, announced its intention to convert more than 128.5 million of its preferred shares into common stock in December last year, setting 16 April as the conversion date.
Altimo said that, on that date, it paid VimpelCom a conversion premium of US$1.39bn (US$10.84 per share) and the shares were converted at a ratio of one common share for one preferred share. In doing so, Altimo increased its economic stake in VimpelCom from 52.7% to 56.2%, however its voting stake remained at 47.85%.
The new term loan facility is split into three tranches. Facility A and part of facility B are to be used to pay the conversion premium. There was no mention of what the rest of the loan will be used for.
Facility A is due to be repaid by 13 May 2013, although Altimo retains an option to extend it until 26 July. Facility B is due 15 January 2014 and Facility C 1 June 2013, but the latter may be extended until 15 January 2014. Part of Altimo’s VimpelCom stake will be used as security for the loan.
Earlier this month, Altimo launched a cash offer to acquire 100% of Egyptian telco Orascom Telecom Holding (OTH) for US$0.70 per ordinary share, valuing the company at US$3.67bn. However, VimpelCom, which owns 52% of OTH, has said it will not tender its shares. This means that if Altimo successfully acquires 48% of OTH for US$1.76bn, it will directly and indirectly control approximately 73% of the Egyptian telco.
Â
