MOSCOW, September 12. /TASS/. Norway’s Telenor said it commences sale of 24.5% in VimpelCom Ltd.
Currently Telenor owns approximately 580 million ADSs (American Depository Shares), or 33% of VimpelCom’s total outstanding common shares. "Telenor ASA today announced that it has commenced a public offering in the United States of 142,500,000 of its VimpelCom Ltd. ADSs," the company said in a press release on Monday. The price at which Telenor will sell the ADSs has not yet been determined."Before pricing of the ADS offering, Telenor may also launch a 3-year bond exchangeable into VimpelCom ADSs in an aggregate principal amount of up to $1 bln with an exchange premium which could be up to 35%," the report said.
Telenor announced plans to divest all its shares in VimpelCom to fully focus on creating value in core operations on 5 October 2015. The company then said that VimpelCom had gradually contributed less to its value while the market value of VimpelCom shares represented around 8% of Telenor’s market capitalization.
Telenor became a shareholder in Russia’s VimpelCom in the late 1990s. After the unification of VimpelCom with Ukraine’s Kyivstar Telenor received a stake in VimpelCom Ltd. Currently Telenor has a 33% stake and 43% of votes in VimpelCom.
VimpelCom is an international telecommunication company owned by Mikhail Fridman’s LetterOne (47.9% of voting shares), Telenor (43%) and minority shareholders (9.1%). It provides services under the Beeline, Kyivstar, Djuice, Wind, Infostrada, Mobilink, Leo, Banglalink and Telecel brands.