Telenor bags $213 mln as Veon exit continues

VEON

27/03/2019 06:38

OSLO, March 27 (Reuters) - Telenor  TEL.OL  has sold 100
million shares in Veon  VON.AS  VEON.O  for net proceeds of $213
million as it continues a gradual exit from its
Netherlands-based telecoms peer, the Norwegian company said on
Wednesday.
    After losing a battle for control over Veon, formerly known
as Vimpelcom, in a power struggle with Russian billionaire
Mikhail Fridman, Telenor decided in 2015 to divest its 33
percent ownership.
    Following Wednesday's sale, which corresponded to a stake of
5.7 percent, Telenor now owns 9 percent of Veon, it said in a
statement.
    "The offering results in net proceeds to Telenor of around
$213 million," the Oslo-based company added.
    Telenor's sale, in the form of American Depository Shares
(ADS), was made at $2.16 each, a discount of 8.1 percent to
Tuesday's close of Veon's ADS at $2.35 on Wall Street.
    J.P. Morgan and Citigroup were joint global coordinators and
bookrunners for the sale. Telenor has agreed to a 60-day lock-up
agreement during which it can't sell further Veon stock, it
added.
    Veon's largest owner is LetterOne, an investment company
chaired by Fridman, which holds a 47.9 percent stake.

 (Reporting by Terje Solsvik; Editing by Kim Coghill)
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70; Reuters
Messaging: terje.solsvik.thomsonreuters.com@reuters.net))