Telenor said it has now completed the sale of its minority ownership in Veon, as it offloaded its remaining 19.7 per cent stake in the operator.
In a statement, Telenor said it priced 90 million Veon shares, representing a 5.1 per cent stake, at $4.15 each with the sale expected to result in net proceeds of $365 million.
The monies will be included in the company’s next cash flow statement and the offering is expected to close on 25 September.
That transaction will leave Telenor with approximately 256.7 million Veon shares (a 14.6 per cent stake), which it will then transfer into an exchangeable bond.
It will then either redeem or exchange the bond, which is due in 2019.
Challenging experience
Telenor first announced its intentions to cut ownership ties in Veon (formerly VimpelCom) in October 2015, when it held a 33 per cent stake, stating its experience with the company was “challenging”.
It was well known Telenor had been feuding with Veon’s other shareholders about the future ownership of the company, which led to its decision to sell.
In April this year Telenor sold off a 4 per cent stake for $259 million, divesting 70 million shares at an offer price of $3.75 each. The move followed the sale of 164 million shares, representing 8.1 per cent, via a US public offering last September.
