Russian mobile giant VimpelCom is delaying Norwegian incumbent operator Telenor’s plan to raise its stake to 42.95% until the matter receives court permission.
Telenor announced yesterday that it had exercised a put option to acquire 71 million…
Russian mobile giant VimpelCom is delaying Norwegian incumbent operator Telenor’s plan to raise its stake to 42.95% until the matter receives court permission.
Telenor announced yesterday that it had exercised a put option to acquire 71 million preferred shares in the Russian group from Weather Investments II, Egyptian tycoon Naguib Sawiris’ investment vehicle.
The Norwegian group and investment firm Altimo, which holds a 40.5% voting stake in VimpelCom, have been locked in a long-running ownership dispute over the Russian operator. Telenor’s decision to increase its stake reportedly attracted strong resistance from not only Altimo, but also Russia’s Federal Antimonopoly Service (FAS).
VimpelCom said, in light of the historical battle over its ownership, 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.
“The committee took into account the potential adverse consequences for VimpelCom’s Russian business if the [court order] is considered by the Russian authorities to have been breached with the support and participation of VimpelCom,” the company stated in a press release.
A spokesman for Telenor said the company had noted VimpelCom’s decision to postpone the registration of its shares.
“VimpelCom Ltd. is obliged to register the shares according to its own by-laws and Bermuda law,” he said in an email.
“Telenor will of course pursue its rightful registration of these shares going forward.”
Altimo were not immediately available for comment.
