Russia approves VimpelCom sale on condition

The Russian government commission on foreign investment has approved the sale of VimpelCom to Russian management on the condition that at least 90% of bonds issued by it’s Dutch parent’s company Veon are in favor of Russian investors, reported the state-owned news agency RIA.

The Netherlands-based holding company Veon sold its Russian operation VimpelCom, which operates under the Beeline brand, to its management led by CEO Aleksander Torbakhov in November. This came following the Ukraine and Russia conflict which saw Veon’s share price nosedive after the invasion.

If the deal was approved, Veon was expected to receive a total sum of RUB130 billion, to be paid primarily by VimpelCom and is targeted for approval on or before 1 June 2023.

The head of the Ministry of Digital Development, Maksut Shadayev, said the management buyback can ocuur within one to two months.

According to RIA, Shadayev said: “This is the condition of the deal, in fact. If Vimpelcom’s management agrees that Russian investors are ready to sell them bonds in the amount of at least 90% of the total debt, then the deal will take place. The commission approved it on these terms. The only question is that these conditions should be the same for all bondholders,”