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As a result, Telenor has withdrawn all its claims against fellow shareholders Altimo Holdings & Investments Ltd, Altimo Cooperatief U.A. and VimpelCom Ltd.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

Gaming drives growth as app store revenues rise 40 percent in 2016 Gaming drives growth as app store revenues rise 40 percent in 2016 People are spending increasing amounts of time in and money on apps, according to new research. More detail
Ericsson, Ciena trial intercontinental data encryption with Telstra Ericsson, Ciena trial intercontinental data encryption with Telstra Ericsson has worked with Australian operator Telstra to showcase how data can be encrypted in transit at 10GBps. More detail
Telia Carrier heads east with new route Telia Carrier heads east with new route Telia’s wholesale arm has established a new cable route between Stockholm and St. Petersburg and upgraded submarine cables to boost its network capacity. More detail
European Communications launches digital transformation survey European Communications launches digital transformation survey European Communications’ latest quarterly survey delves into operators’ views about digital transformation. More detail
Profit-hungry Ekholm officially takes the helm at Ericsson Profit-hungry Ekholm officially takes the helm at Ericsson Börje Ekholm’s task of reviving Ericsson has begun as he starts his first day as President and CEO of the Sweden-based vendor. More detail
    

@eurocomms