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Russia's MegaFon To Pay $5.15 Bln In Dividend, Seek IPO

Russian mobile phone operator MegaFon would pay a dividend of $5.15 billion to Swedish telecom firm TeliaSonera AB (TLSNY.PK, 0H6X.L), AF Telecom and Altimo and pursue an initial public offering, resolving the governance disputes. Also, the parties have agreed that AF Telecom would get majority control in MegaFon, while Altimo would exit and TeliaSonera would reduce its ownership but would keep a long term strategic ownership.

Further, TeliaSonera said it anticipates to receive nearly SEK 22 billion in dividends and proceeds from the divestment of its 8.2 percent indirect interest in MegaFon. In addition, TeliaSonera targets to keep a long term ownership of 25 percent plus one share in MegaFon after an IPO.

The company added, "By reaching an agreement with the two other partners, whereby MegaFon will pursue an IPO and adopt an agreed dividend policy, we have resolved the ownership disputes and found a way to increase both the liquidity and value of our asset. By reducing our ownership we expect to realize a significant amount of the accrued valued generated by MegaFon since its inception."

by RTTNews Staff Writer

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