9/12/2016, 12:16 PM (Source: TeleTrader)
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Telenor to sell 25% stake in VimpelCom

Telenor ASA announced on Monday it has initiated a public offering in the United States of a quarter of its stake in the Amsterdam-based telecommunication services provider VimpelCom Ltd. The Norwegian company said the offering consists of 142.5 million of VimpelCom's American Depository Shares (ADSs), while Telenor's current ownership amounts to 580 million ADSs, or a 33% stake.

In addition to the offering, Telenor announced its intention to grant the underwriters an option to buy up to 21.4 million additional ADSs at the public offering price minus the underwriting discounts and commissions. Before the pricing of the divestiture is established, Telenor may also launch a 3-year bond exchangeable into VimpleCom ADSs with a principal amount of $1 billion and an exchange premium of up to 35%, the company said. It added that the bond would be sold outside the U.S. to non-U.S. buyers.

Telenor's stocks dropped 2.79% to 142.6 Norwegian krone at 12:00 p.m. CET, while VimpelCom closed as much as 6.70% in the red, reaching $3.9 on Friday.

Breaking the News / IB