News
Norwegian incumbent reportedly in talks with potential suitors; CEO eyes Vietnam, Indonesia.
Telenor is making progress with its plan to sell out of Vimpelcom, and is on the hunt for opportunities further east.
The Norwegian incumbent’s CEO Sigve Brekke said in a Bloomberg report late last week that his company is in contact with potential buyers for its 33% stake in Vimpelcom, which is worth US$2.42 billion (€2.13 billion).
Brekke said he is open to possible acquisitions in growth markets including Indonesia, Vietnam and the Philippines.
Telenor first revealed plans to exit Vimpelcom in early October 2015. Selling out of the Russia-based operator will close a dark chapter in Telenor’s recent history.
Vimpelcom became the subject of a corruption investigation by U.S. and Dutch authorities over its links with a company called Takilant, which helped it to acquire spectrum in Uzbekistan. The scandal forced the resignation of chairman Svein Aaser, while several executives have been temporarily suspended, including CFO Richard Olav Aa and general counsel Pål Wien Espen.
In February, Vimpelcom admitted having violated anti-corruption laws with regard to its Uzbekistan business, and agreed to pay an undisclosed fine.
Meanwhile, last week Vimpelcom filed a prospectus for the possible sale of 1.57 billion shares, equal to 89% of the company, with the U.S. Securities and Exchange Commission (SEC).
It is worth noting that Vimpelcom’s biggest single shareholder, Russian investment firm LetterOne Holdings, owns 56%, which when added to Telenor’s 33% stake comes to 89%.
However, Brekke claimed in Friday’s Bloomberg report that LetterOne has no intention of selling out of Vimpelcom.
