Telenor is reducing its stake in Veon, formerly known as VimpelCom. The Norwegian operator announced the sale of 70 million shares in the company, out of the total 416.7 million shares of 23.7 percent stake it has in Veon. The sale of the around 4 percent stake in Veon was priced at USD 3.75 per share, resulting in net proceeds for the company of a total USD 259 million. In September 2016, Telenor already sold 164 million Veon ADS, as part of a strategy to reduce its exposure to the Eurasian markets.
Following the transaction, Veon will no longer be treated as an associated company in Telenor's financial reporting and all of the previously recognised currency translation differences, amounting to an accounting loss of NOK 7.5 billion, including tax effects related to the hedging instruments, will be reclassified to the income statement. The effect will be recognised in the second quarter 2017, as will the one-time gain on the share sale.
