FONT-SIZE Plus   Neg

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 RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Cement giant LafargeHolcim (HCMLY.PK, HCMLF.PK), formed by the combination of French Lafarge and Swiss peer Holcim, Wednesday said its sales declined for the third quarter as well as nine months. Apparel retailer Guess? Inc. (GES) on Tuesday reported a drop in profit for the third quarter, as revenues declined 12 percent. Earnings for the quarter trumped Wall Street estimates, while revenues were in line with expectations. Guess' third-quarter profit dropped to $12.4 million or $0.15 per share... Shares of Hewlett-Packard Co. (HPQ) slipped a near 6 percent in extended session on Tuesday after the computer and printer maker reported a fourth-quarter profit and revenues that fell short of Wall Street estimates, hurt largely by continued weak demand for PC. It is for the last time HP is releasing...
comments powered by Disqus
Follow RTT