Telenor, a Norwegian company with mobile operations in countries across Europe and Asia, yesterday commenced arbitration proceedings against VimpelCom, a leading Russian mobile operater in which Telenor owns a 40% stake, and Altimo, a VimpelCom shareholder. Altimo is an invesment company representing Alfa Group, one of Russia’s largest privately owned financial-industrial conglomerates.
Telenor opposes the planned acquisition by VimpelCom of Wind Telecomunicazioni, a leading Italian mobile operator controlled by Egyptian billionaire Naguib Sawiris.
In December, Jon Fredrik Baksaas, president and CEO of Telenor Group, announced that Telenor opposed the acquisition because “it is not strategically nor financially sound for VimpelCom shareholders. At this stage, it is essential that VimpelCom focus on regaining lost momentum in the Russian Market.” Telenor Group “aims to secure Telenor pre-emptive rights and to avoid dilution in the event the acquisition is completed.”
Under the planned acquisition, Telenor’s stake would be diluted from 39.58% to 31.7% (voting share: from 36.03% to 25%). Telenor, using its pre-emptive rights to buy shares under the VimpelCom shareholder agreement, is prepared to buy shares in VimpelCom worth around $2.7 billion in order to defend its position in the company.
Sources: Kommersant
