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As a result, Telenor has withdrawn all its claims against fellow shareholders Altimo Holdings & Investments Ltd, Altimo Cooperatief U.A. and VimpelCom Ltd.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

BT to use smart lockers to speed up network improvements BT to use smart lockers to speed up network improvements BT hopes to speed up the installation and maintenance of broadband and phone services thanks to a roll out of “smart” lockers across the UK. More detail
Millennials are “an intriguing mix of contradictions”, study finds Millennials are “an intriguing mix of contradictions”, study finds Millennials have fragmented digital identities and refuse to be sold to, according to a new report that warned brands have a big job on their hands to keep up with this key demographic. More detail
TalkTalk, KCOM suffer Mirai-based cyber attacks TalkTalk, KCOM suffer Mirai-based cyber attacks TalkTalk and KCOM are the latest network operators to suffer at the hands of Mirai malware after the two UK telcos confirmed that customer routers had been affected. More detail
Nokia and HPE team up for new enterprise-focused IoT partnership Nokia and HPE team up for new enterprise-focused IoT partnership Nokia and Hewlett-Packard Enterprise (HPE) are to jointly market and sell IoT applications for industry, manufacturing and smart cities. More detail
Ethical hackers claim Mirai is “tip of the iceberg”, as Deutsche Telekom boosts security after attack Ethical hackers claim Mirai is “tip of the iceberg”, as Deutsche Telekom boosts security after attack Deutsche Telekom will redouble its network and data security in the light of this week’s failed hack on its routers, which saw around 900,000 customers disconnected from telephone, broadband and television... More detail
    

@eurocomms