Telenor ups Vimpelcom stake as it ends shareholder dispute

Telenor has upped its stake in Russia-based mobile operator Vimpelcom, thereby ending its dispute with family-owned investment vehicle Weather Investments II.

Telenor paid €288 million for 234 million VimpelCom preferred shares from Weather, which is owned by Egypt’s Sawiris family.

The deal increases the Norway-based operator’s ownership from 25 percent to 36.4 percent.

As a result, Telenor has withdrawn all its claims against fellow shareholders Altimo Holdings & Investments Ltd, Altimo Cooperatief U.A. and VimpelCom Ltd.

The dispute related to Telenor being denied the opportunity to buy more shares when VimpelCom merged with Naguib Sawiris’s Wind Telecom SpA.

"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," said Jon Fredrik Baksaas, Telenor's CEO.

"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.”

Naguib Sawiris added: "I am very happy about this transaction which will allow Weather to participate actively in the Supervisory Board of VimpelCom, will foster improved corporate governance of the company and ensure a better focus of the management on industrial issues in a context in which the existing disputes among the key shareholders have been resolved."

More News

Telecoms industry regrets UK referendum result, but proclaims ‘business as usual’ Telecoms industry regrets UK referendum result, but proclaims ‘business as usual’ The telecoms industry claimed business as usual and, in most corners, some regret following the UK’s referendum decision to leave the European Union. More detail
Messe Berlin takes cloud file sharing solution from T-Systems Messe Berlin takes cloud file sharing solution from T-Systems T-Systems has secured a deal with the Messe Berlin exhibition centre to provide a secure cloud-based solution for sharing large and confidential files. More detail
Operators hunt sharper BSS gains, as 68 percent of ‘big bang’ projects fail Operators hunt sharper BSS gains, as 68 percent of ‘big bang’ projects fail Network operators are taking a more focused approach to the digital transformation of their business support systems (BSS) in order to achieve faster results and keep pace with OTT players, according to... More detail
eir zero-rates Facebook, Twitter and Instagram data on mobile eir zero-rates Facebook, Twitter and Instagram data on mobile Ireland’s eir is to zero-rate data for consumers using Facebook, Twitter and Instagram. More detail
M&A in telecoms stabilises, execs turn attention to deals in new sectors M&A in telecoms stabilises, execs turn attention to deals in new sectors Digital disruption and changing consumer preferences are driving telecoms executives to consider M&A deals outside of the sector, according to new research. More detail