Telenor delaying selling their shares in Vimpelcom

TelenorTelenor headquarters.Photo: Norway Today media

Nine months after Telenor stated that they would sell their shares in Vimpelcom, the company still  has not done so. The Telenor boss is now indicating that they may “stay” in the company for yet another year.

In its financial report for the second quarter this year,which Telenor CEO Sigve Brekke presented on Tuesday, Telenor writes that it is “highly likely” that the sale will be completed within the next twelve months,  the newspaper Klassekampen writes. It’s now nine months since the then newly appointed Telenor’s CEO stated that the company would sell its shares in Vimpelcom.

– We are working to find the right time and the right way to sell our shares,  Brekke says.
Jon D. Gjertsen, analyst at Pareto, thinks sales will have to be made at substantial discounts to the current share price and say it can be difficult to find a buyer who is interested in taking over Telenor’s position in the company.

– Therefore, we believe Telenor will have to sell their shares on the Nasdaq, which will probably take a long time, he said.
Telenor has invested  a total 15 billion kroner in Vimpelcom, which this spring admitted to having paid $ 114 million in bribes in order to get telecommunications licenses in Uzbekistan. Telenor has so far received 20 billion kroner in profits from the company.

Source: NTB scanpix / Norway Today

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