Telenor sells 5.1% stake in Veon, sees NOK 2.9 bln proceeds in Q3

Nieuws Algemeen Wereld 21 SEP 2017
Telenor sells 5.1% stake in Veon, sees NOK 2.9 bln proceeds in Q3

Telenor said it is continuing the sale of its interest in Veon, formerly known as Vimpelcom. It is offering 5.1 percent of Veon's total outstanding common shares, leaving Telenor with about 256.7 million ADS, or about 14.6 percent of Veon's common shares. The underwriters have priced the 90 million common shares and ADS in the offering at USD 4.15 each, giving net proceeds of USD 365 million (around NOK 2.9 billion), which will be included in Telenor's third-quarter cash flow statement.

The offering is expected to close on or about 25 September. Telenor expects to transfer the balance of the remaining ADS pursuant to Telenor's USD 1 billion, three-year exchangeable bond due 2019.

Jorgen C Arentz Rostrup, chief financial officer of Telenor, said this transaction marks the completion of its sell-down in Veon. The dividends it received from its shareholding in Veon have surpassed its total investments in the company, he said. In addition, its divestment transactions have secured net proceeds of around USD 2 billion, he added.

Categories:

Algemeen

Companies:

Telenor,  Vimpelcom,  Veon

Regions:

Wereld

Tags:

M&A buyouts & divestments

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