Telenor Calls for Arbitration over VimpelCom/Weather Deal

Published on: 1st Jan 1970: 1:33am

­VimpelCom has received a notice from its shareholder, Telenor that it plans to enforce an arbitration clause in their shareholder agreement to investigate VimpelCom's purchase of Egypt based Weather Investments. Telenor objects to the transaction, and also objects to VimpelCom's declaration that it is a "Related M&A Transaction" which required its support for the company to carry out the purchase.

The VimpelCom Supervisory Board decided at its January 16, 2011 meeting that the Transaction constitutes a Related M&A Transaction and consequently the VimpelCom shareholders agreement does not provide pre-emptive rights to Altimo and Telenor.

Telenor has requested that VimpelCom adjourn the special general meeting of VimpelCom shareholders scheduled for March 17, 2011 until after the arbitration panel has reached a decision on the claim.

Under the terms of the US$6.8 billion deal announced back in October, VimpelCom will own - through Weather - 51.7% of Orascom Telecom Holding and 100% of Wind Italy. Weather is due to receive 326 million new VimpelCom shares and US$1.8 billion in cash.

Upon issuance of the new VimpelCom shares, Telenor and Altimo will see their shares in the enlarged company shrink to 31.7% and 31.4% of the economic rights and 29.3% and 36.4% of the voting rights, respectively. Minority shareholders in VimpelCom will represent 17% of the economic rights and 15.7% of the voting rights.

 

Tags: [orascom telecom]  [vimpelcom]  [weather investments]  [telenor]  [telecom]  [Russia]  [Egypt]