The Dutch holding Veon has agreed on the final conditions for the exit of the Russian business: VimpelCom (Beeline brand) will pass to local top management. The agreement does not imply a buyback.

Veon agreed to final conditions to exit Russian business

The deal could be announced next week. According to its results, 100% of Vimpelcom PJSC will be transferred to Copernicus-invest 3 OJSC, which belongs to the operator’s general director Alexander Torbakhov and four other top managers, Kommersant writes, citing sources.

VimpelCom is valued at 370 billion rubles and the company’s net debt is 240 billion rubles. The cost of the bonds amounted to 130 billion rubles. As a result, the company’s debt/EBITDA ratio will be 3.5.

Analysts consider this level to be critical and assume that in the near future the company will need to attract a new investor, through a direct sale of shares or an initial public offering (IPO).

VimpelCom told the publication that “the information about the closing of the deal with Veon is not true.”

The deal was scheduled to close on June 1, but the government commission had doubts about the agreements with the holding company’s Russian bondholders.

Veon unites telecom operators from Russia, Ukraine, Pakistan, Algeria, Kazakhstan, Uzbekistan, Bangladesh, Kyrgyzstan, Armenia and Georgia. Almost half of the holding’s shares (47.9%) belong to billionaire Mikhail Fridman’s LetterOne group.

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Author:

Karina Pardaeva

Source: RB

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I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.

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