Telenor starts selling Vimpelcom shares

Nieuws Algemeen Wereld 12 SEP 2016
Telenor starts selling Vimpelcom shares

Telenor said that it has commenced a public offering in the US of 142.5 million of its Vimpelcom American Depository Shares (ADS). Telenor currently owns approximately 580 million ADS, or 33 percent of Vimpelcom’s total outstanding common shares. This transaction represents 24.5 percent of Telenor’s holding, or 8.1 percent of Vimpelcom’s outstanding shares. At Vimpelcom's last closing share price of USD 4.19 per share, the sale will raise Telenor nearly USD 600 million before transaction fees. 

Telenor will grant the underwriters an option to purchase up to 21.375 million more ADS at the public offering price. Before pricing of the ADS offer, Telenor may also launch a three-year bond, exchangeable for Vimpelcom ADS worth up to USD 1 billion, with an exchange premium of up to 35 percent. The exchangeable bond will be launched outside the US to non-US persons.

Telenor said it would not comment further this point in time. The pricing will be announced after it completes bookbuilding. Morgan Stanley and JP Morgan will act as joint global coordinators and joint lead bookrunners, and Citigroup and Credit Suisse will act as joint bookrunners for the offering.

This transaction follows Telenor’s announcement on 05 October 2015 of its intention to divest its stake in Vimpelcom.

Categories:

Algemeen

Companies:

Telenor,  Vimpelcom

Regions:

Wereld

Tags:

Shareholders & subsidiaries, Financial funding, M&A buyouts & divestments

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