70 million-share offering will reduce Norwegian incumbent’s stake by 4%.

Telenor on Friday announced that it aims to raise $259 million (€244.03 million) from the sale of 70 million shares in Veon, the telco formerly known as Vimpelcom.

The Norwegian incumbent first revealed plans for the sale on Thursday, but did not disclose the price. Since then, underwriters have priced the offering at $3.75 per share.

The sale will reduce Telenor’s stake in Veon by 4%, leaving it with 19.7% in total.

"Following the transaction, Veon will no longer be treated as an associated company in Telenor’s financial reporting," Telenor said, in a statement.

Both the reclassification of Telenor’s stake in Veon and the proceeds from the share sale will be recognised in the second quarter of this year.

The offering is due to close on or about 12 April.

The sale is in line with Telenor’s plan to divest its entire holding in Veon, which came about as the latter became the subject of corruption investigations related to its Uzbekistan operation.

As a major shareholder, Telenor was criticised for its imprudence regarding the alleged dodgy dealings at Veon, which ultimately led to the resignation of Telenor’s chairman and its CFO and general counsel.