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Russia's MegaFon Egdes Closer to Listing Shares on London Stock Exchage
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Russian mobile network, MegaFon has taken another step towards listing its shares on the London Stock Exchange after it asked the Russian regulator for permission to float a 20% stake in the company.
The company said in a filing that it is seeking permission to list 123 million shares in an overseas floatation that would represent 19.9% of its equity. The floatation could raise US$4 billion for the company's shareholders.
The company had been expected to seek a listing on the London Stock Exchange in July though, but delayed it citing market condition.
The floatation is part of a settlement of a long running dispute between its shareholders earlier this year when it made a US$5.15 billion payment to its three shareholders, TeliaSonera, AF Telecom and Altimo.
The shareholders also reshuffled their holdings, leaving TeliaSonera with 35.6 percent, AF Telecom 50 percent plus one share while MegaFon, through its own subsidiary, owns the remaining 14.4 percent.
The shareholders agreed to work towards an IPO, involving up to 20 percent of MegaFon's shares, of which TeliaSonera and MegaFon will contribute with up to 10.6 percent and 9.4 percent, respectively.
If the IPO had not been carried out by the end of 2014, TeliaSonera has the right to sell its stake to AF Telecom or MegaFon itself. The price paid will be based on fair market value.
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