Kyivstar’s UAH350m share issue plan to be voted on in March

25 Jan 2011

Shareholders of Ukrainian cellco Kyivstar, part of the Vimpelcom group, will vote on a plan to issue an additional seven million common shares worth a nominal value of UAH350 million (USD43.5 million) at an extraordinary general meeting on 14 March 2011. Newspaper Delo.ua writes that the agenda of the meeting will include a change in the authorised capital of the company as a result of reorganisation, and changes in the company’s charter. Under the plan, Kyivstar’s capital will increase by UAH350 million to UAH884 million, in proportion to the entire share capital of shareholder Storm, a 100%-owned subsidiary of Alfa Group, which will be merged into the share capital of Kyivstar. Shareholders of the operator via Storm will have the right to exchange their existing shares for the appropriate number of Kyivstar shares. The cellco said that the ongoing internal restructuring is ‘in line with new legislation on joint stock companies.’ Vimpelcom (including Kyivstar) is controlled by Alfa and Norway’s Telenor, which hold voting interests of around 43.9% and 35.4%, respectively (with respective equity shares of around 38.5% and 38.9%). A senior analyst at BG Capital was quoted by Delo as saying that, on the face of it, Kyivstar’s plan could reduce Telenor’s voting share in the Ukrainian operator to 22%.

Ukraine, Kyivstar