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Telenor ends dispute with VimpelCom partners
16 February 2012
Telenor buys 234 million preferred shares of VimpelCom for $374.4m and ends claims against Russian partners
Telenor has increased its voting share in VimpelCom to 36.36%, by buying 234 million preferred shares in the Russian operator from Weather Investments for $374.4 million.
Telenor also announced that it has ended its claims against Russian shareholders in the group, including Altimo, in advance of arbitration proceedings.
Jon Fredrik Baksaas, CEO of Telenor, said: “This transaction takes Telenor to approximately the same voting position as a successful outcome of the arbitration process would have achieved, and is therefore a commercial solution we are happy with. The withdrawal of the arbitration claim will prevent further dilution of the VimpelCom shareholders, and it will enable a more normal corporate governance situation in VimpelCom. We will work to expand the VimpelCom board to eleven members.”
Weather has also reached an agreement with Telenor on put and call arrangements for the former’s remaining 71 million preferred shares of VimpelCom.
Weather Investments was Egyptian businessman Naguib Sawiris's Orascom unit with which VimpelCom completed a complex M&A deal in 2011. GTB
Further reading from Global Telecoms Business:
VimpelCom retains brands but aims to save $2.5bn in ... 09 Feb 2012
VimpelCom appoints Telenor exec as COO and deputy CEO 21 Nov 2011
Ex-GSMA head Rob Conway joins VimpelCom 01 Sep 2011
VimpelCom and Sawiris near merger deal 04 Oct 2010
VimpelCom names new chief 17 May 2011