Telenor to Sell its $2.4 Billion Stake in Russia's VimpelCom
Published on: 4th Oct 2015
Note -- this news article is more than a year old.
Telenor has announced that it plans to sell its one third stake in Russia's VimpelCom following years of on off disagreements with the company.
Telenor Group has invested NOK 15 billion in VimpelCom. The company has received NOK 20 billion in dividends and the current market value of the ownership stake is approximately NOK 20 billion (USD2.4 billion)
Telenor hasn't decided how to sell the shares yet.
However, VimpelCom's current share price is higher than the value accounted for on Telenor's accounts, so the firm will book a non-cash impairment of approximately NOK 7.5 billion (USD892 million) in the third quarter.
"The VimpelCom asset, where Telenor holds a minority position without the possibility to fully control the company, has been challenging. Based on a strategic review by the Board and the CEO, and after due considerations, Telenor Group has decided to divest its shares in VimpelCom Ltd. The disposal of our shares is in the best interest of our shareholders, and in accordance with Telenor Group's long-term strategic focus," said Mr. Svein Aaser, Chairman of the Board of Directors of Telenor Group.
VimpelCom has gradually contributed less to the value of Telenor Group, and the value of Telenor's core operations have increased rapidly. Today, the market value of the VimpelCom shares represents approximately eight per cent of Telenor's market capitalization.