VimpelCom Ltd. (VIP: Quote) said the Moscow Arbitration Court has issued a new, expanded injunction order in connection with the previously announced claim by the Russian Federal Anti-monopoly Service.
The injunction order is related to the previously disclosed claims brought by the FAS against two of the largest shareholders of VimpelCom, Telenor East Holding II AS and Weather Investments II S.a r.l., in the Moscow Arbitration Court. The FAS claim allege that Telenor (TELN: Quote,TELNY.PK) acquired preferred shares of VimpelCom from Weather and that the two shareholders entered into other agreements in violation of the Russian Law on Strategic Investments.
The injunction order stated that it prohibits each of VimpelCom and its wholly-owned subsidiaries, OJSC "Vimpel-Communications" and VimpelCom Holdings B.V., and their respective management bodies from giving effect to the resolutions of the Annual General Shareholders Meeting of the company's subsidiary OJSC VimpelC?m, which was held on May 21, 2012.
The resolutions include prohibiting the payment of dividends to shareholders of OJSC VimpelCom based on the results of operations in 2011, and the transfer of the cash intended for dividend distribution to the accounts of OJSC VimpelCom or other companies with foreign banks; and also prohibiting the external auditors elected at the OJSC VimpelCom AGM from exercising the powers conferred on them.
It further include prohibiting the board of directors of OJSC VimpelCom elected at the OJSC VimpelCom AGM from exercising their powers pursuant to the charter of OJSC VimpelCom; and prohibiting the taking of other actions and steps designated to transfer the indicated funds out of the company's Russian subsidiary OJSC VimpelCom.
A hearing on the merits of the FAS claim is currently scheduled to take place on October 17, 2012. Unless it is lifted on appeal, the injunction will be in force until a decision by the court on the merits of the FAS claim comes into effect.
VimpelCom said it intends to appeal the expanded injunction order, but will also work toward reaching an amicable resolution with the relevant regulators as the company was not directly involved in the transaction between Telenor and Weather.
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by RTT Staff Writer
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