Telenor disputes Vimpelcom valuation; fears enforced stake sale

15 May 2009

Telenor has announced that it is disputing the valuation placed on its stake in Russia’s Vimpelcom. In February the Norwegian telco was ordered to pay Vimpelcom USD1.7 billion in compensation for delaying the Russian cellco’s acquisition of Ukrainian Radio Systems (URS, now branded Beeline). The RTS exchange has valued Telenor’s 29.9% stake in Vimpelcom at USD1.8 billion, and as such the Norwegian telco fears it could be forced to sell its stake in order to satisfy the fine. According to Reuters, Telenor’s appeal is due to be heard by a Siberian court on 26 May. The company has also submitted a stay motion to a Moscow court to prevent the sale of the Vimpelcom stake while it appeals the fine, with that hearing to be held on 3 June.

Russia, Beeline (Russia), Telenor Group, VEON