Published On: Sat, Apr 8th, 2017

Telenor Group Selling More of Its Shares in VEON

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Telenor GroupTelenor Group announced that its selling more stakes in VEON, formerly VimpelCom. Decision is inline with Telenor’s last year’s strategic decision of offloading shares in VEON.

Telenor said that it will sell 70 million common shares in VEON in the form of common shares and American Depositary Shares (ADS) at a price of US 3.75 dollar per share/ADS.

Telenor is hoping to raise USD 259 million as an outcome of the sellout.

This particular transaction represents 4.0 per cent of VEON’s total outstanding common shares, leaving Telenor with approximately 346.7 million VEON ADSs (19.7 per cent of VEON’s total outstanding common shares), including the VEON ADSs that are underlying Telenor’s USD 1 billion, 3-year exchangeable bond due 2019.

Citigroup and Morgan Stanley have acted as joint global coordinators and joint book runners for the offering.

Following the transaction, VEON will no longer be treated as an associated company in Telenor’s financial reporting and all of the previously recognized currency translation differences, amounting to an accounting loss of NOK 7.5 billion, including tax effects related to the hedging instruments, will be reclassified to the income statement.

The effects of reclassification do not impact the total equity of Telenor group. The effect will be recognised in the second quarter 2017.

The net proceeds of USD 259 million (around NOK 2.2 billion) will be included in Telenor’s cash flow statement for the second quarter 2017.

About the Author

- Zonaira joined IBEX from the first issue as a writer and later joined the editorial team. She completed her Masters’ degree in Mass Communication from Kinnaird College majoring in Film Making and Advertising. Lifestyle stories, social issues, budding entrepreneurs and fresh startups resonate and inspire her writing. She is keen on putting in perspective the latest business developments and happenings and highlighting prominent professionals belonging to all walks of business. She has worked as a content writer, editor and reporter for a number of publications. Always in transit, an avid reader and traveler, her other interests include theater, languages, religions and teaching young children creative writing.