Telenor prices VimpelCom share sale and exchangeable bond

19 Sep 2016

Telenor Group has priced its offering of 142.50 million American Depositary Shares (ADS) in VimpelCom Ltd at a public offering price of USD3.50 per ADS on NASDAQ, resulting in net proceeds to Telenor of USD486.3 million, the Norwegian group said in a stock exchange notification on Friday. Telenor also granted the underwriters a 30-day option to purchase up to 21.375 million additional ADS at the public offering price, less underwriting discounts and commissions. The offering is expected to close on or about 21 September 2016.

The transaction follows Telenor’s announcement on 5 October 2015 of its intention to divest its entire 33% equity stake in Russian-backed, Amsterdam-based multinational telecoms group VimpelCom, in order to better focus on its core operations. If all the ADS shares on offer (including the additional option for underwriters) are taken up, the sale represents 9.32% of VimpelCom’s total shares.

In addition, in a transaction outside the United States to non-US persons, Telenor has priced a USD1 billion, 0.25% three-year bond that will be exchangeable under certain conditions for up to a total of 204,081,633 ADSs (subject to adjustment) at an exchange price representing a premium of 40% to the public offering price of the ADSs. The bond is expected to be issued on or about 21 September 2016.

Morgan Stanley and J.P. Morgan are acting as joint global coordinators and joint bookrunners, and Citigroup and Credit Suisse are acting as joint bookrunners.

Norway, Russia, Telenor Group, VEON