Russia’s Federal Antimonopoly Service (FAS) is withdrawing its lawsuit against Norwegian telco Telenor over its stake hike in VimpelCom, having received the approval of the government commission on foreign investments.
FAS head Igor Artemyev today…
Russia’s Federal Antimonopoly Service (FAS) is withdrawing its lawsuit against Norwegian telco Telenor over its stake hike in VimpelCom, having received the approval of the government commission on foreign investments.
FAS head Igor Artemyev today directed the Moscow Arbitration Court, with which the regulator filed the suit in April, to withdraw the claim and all connected injunctions imposed upon VimpelCom, the regulator said in a short statement. The court case had been set to begin on 27 November.
Artemyev said FAS is pleased the matter has been settled and thanked shareholders in VimpelCom, which is listed on the Amsterdam and New York stock exchanges but has its largest market in Russia, for their patience. The regulator had contended Telenor’s February stake increase contravened foreign ownership laws, however Russia’s Altimo has since overtaken the Norwegian telco as VimpelCom’s largest shareholder.
A Telenor spokesperson said the company is pleased at the news and awaits final confirmation from the Moscow court that the matter has been settled. He described the development as expected given the company has always considered the suit to be “without any merit”.
“We expect normal corporate governance in VimpelCom to be restored as soon as the court has cancelled injunctions and the case,” he said.
In late May, the Moscow court issued an injunction order prohibiting VimpelCom and its wholly-owned subsidiaries from giving effect to resolutions passed at its last AGM. The order added new restrictions to those already imposed in connection to FAS’ case against Telenor. These included a prohibition on paying dividends to VimpelCom shareholders and on the board of directors from exercising powers pursuant to the company charter.
In a statement today, VimpelCom said said it is pleased the FAS is withdrawing the suit and, like Telenor, said it awaits formal confirmation from the court that the suit has been withdrawn and injunctions removed.
VimpelCom plans to hold its next AGM on 21 December, provided the court lifts the injunctions before 27 November.
Telenor now has a 43% voting stake in VimpelCom, while Altimo – part of Russian businessman Mikhail Fridman’s Alfa Group – has a 47.85% stake. Earlier this month, Telenor said it is open to offers for its investment.
