VimpelCom has made a provision of US$900m as it braces itself for potential liabilities as it is the subject of multiple investigations over its conduct in Uzbekistan. Telenor, which is looking to sell its 33% stake in VimpelCom, said the news “significantly increases our concerns in relation to the potential outcome of the still ongoing investigations”.
Amsterdam-based VimpelCom (
Telenor (OSE:TEL), which is looking to sell its 33% stake in VimpelCom, said it viewed the news as a “serious development that significantly increases our concerns in relation to the potential outcome of the still ongoing investigations”.
The US Securities and Exchange Commission, the US Department of Justice and the Dutch Public Prosecution Service are examining VimpelCom’s behaviour in relation to bribery allegations connected to its Uzbek subsidiary and prior dealings with Takilant Ltd.
VimpelCom’s announcement comes less than a week since Norway’s government forced the resignation of Telenor’s chairman after receiving new information about corruption allegations against VimpelCom in Uzbekistan.
Industry minister Monica Mæland said she no longer had confidence in Svein Aaser after receiving new information about the case, which she said Telenor should have already disclosed to herself and Norway’s Standing Committee on Scrutiny and Constitutional Affairs.
Telenor contends it has fully cooperated with investigating authorities as a witness.
VimpelCom said discussions with the authorities are ongoing and “until concluded, there can be no certainty as to the final cost to the company of any such resolution or the nature, likelihood or timing of a definitive resolution”.