The Norwegian telecommunications operator Telenor put up for sale a package of 8.1% of the Vimpelcom shares, the value of which was about $ 555 million at the close of Friday trading and said it would seek a buyer through book building process.
Telenor also announced that it could also issue Vimpelcom bonds that are three-year convertible into ADS, totaling up to $ 1 billion, the premium can be up to 35%.
In October last year, the Norwegian company said it planned to sell a 33% stake in Vimpelcom, which in February paid $ 795 million for the settlement of the US and the Netherlands claims related to the investigation the case of bribery in Uzbekistan.
As coordinators and leading book runners there are Morgan Stanley (NYSE: MS) and J.P. Morgan. Citigroup (NYSE: C) and Credit Suisse (SIX: CSGN) are book runners.
Telenor said that it won’t give further comments. The ADS price will be announced after the book building.
Telenor put up for sale 24.5% of VimpelCom, or 142.5 million American depositary receipts. Telenor now owns about 580 million ADS, or 33% of the ordinary shares of VimpelCom.
Underwriters will get an option to buy up to 21.38 million additional ADS.
Telenor clashed over control of the company with another major shareholder of VimpelCom, the Russian businessperson - Mikhail Friedman, and the dispute became the subject of diplomatic discussion.
The Norway Telenor owns 54% of shares.
Among the positive consequences for VimpelCom, there may be the decrease in the risk of corporate conflicts after the establishment of a sole control by one investor, the return prospects of dividend payments, which could be a means of pressure on Telenor, and an increase in VimpelCom’s free float, even if gradually and possibly in 3 years.
“The main impact will be felt in the shares" – said Friedman.