Russia’s Federal Antimonopoly Service (FAS) has endorsed Norwegian telco Telenor’s proposal to end its long-running feud with Russian investment firm Altimo over their stakes in VimpelCom by jointly purchasing Ukranian investor Viktor Pinchuk’s 6%…
Russia’s Federal Antimonopoly Service (FAS) has endorsed Norwegian telco Telenor’s proposal to end its long-running feud with Russian investment firm Altimo over their stakes in VimpelCom by jointly purchasing Ukranian investor Viktor Pinchuk’s 6% share.
FAS head Igor Artemyev told reporters it would be ideal if VimpelCom’s embattled major shareholders acquire equal stakes in the mobile operator by buying out Pinchuk, who owns his stake via investment vehicle Bertofan Investments. Artemyev also recommended Telenor and Altimo have an equal number of seats on the VimpelCom board.
Artemyev said the antitrust authority will seek to delay a court hearing on the matter set to begin on 17 October by at least a month to give the parties time to reach a resolution out of court.
Noting that Telenor is a major investor in Russia, Artemyev cautioned against hostile actions that may lead the telco to exit the country.
On Monday 1 October, Telenor issued a press release proposing such a solution to the ownership dispute.
“[A]s a business matter and in view of the history of the recent transactions, we seek a solution including Altimo, Bertofan and Telenor that gives Altimo and Telenor parity in VimpelCom,” a Telenor spokesperson said Monday. “To this end, Telenor proposes that Altimo and Telenor offer to buy the preferred shares held by Bertofan Investments Limited for a full and fair price, and in such proportions as will secure equal ownership positions for Altimo and Telenor after such transaction.”
Today, the spokesperson said: “we welcome the positive response from FAS and await further progress to settle the issue”.
Telenor said on Monday that it has a 42.5% voting stake in VimpelCom following the exercise of a put option to acquire 71,000,000 preferred shares from Egyptian investor Naguib Sawiris’ Weather Investment II for US$113.6m. But the following day VimpelCom said its corporate governance committee decided to delay Telenor’s stake acquisition until an order issued by the Moscow Arbitration Court prohibiting such a share transfer ceases. A Telenor spokesperson told TelecomFinance on Tuesday in an emailed statement: “VimpelCom Ltd. is obliged to register the shares according to its own by-laws and Bermuda law.”
“Telenor will of course pursue its rightful registration of these shares going forward.”
Altimo, which holds a 40.5% stake in VimpelCom, was not immediately available for comment.
