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EBRD sells its 2.6 per cent stake in Russia's VimpelCom
Bank's exit to promote transition in country's telecoms sector
The European Bank for Reconstruction and Development has sold 1,415,028 American Depository Shares in Open Joint Stock Company Vimpel-Communications, a leading mobile telecommunications operator in Russia, at a price of USD 38 per ADS.
The ADSs sold are listed on the New York Stock Exchange and constituted the EBRD's entire VimpelCom stake, acquired in August 2000 as part of VimpelCom's equity and convertible bond offering.
The ADSs were placed with institutional investors by way of accelerated bookbuilding organised by Merrill Lynch International, which acted as agent for the EBRD. The placing has introduced new institutional investors to VimpelCom's shareholder base.
David Hexter, Deputy Vice President of the EBRD, said the investment was a good example of the EBRD fulfilling its core mandate by providing financing at a time when Russia was working to overcome uncertain economic conditions. This sent a positive signal to international capital markets about the long-term potential of the telecommunications sector in Russia.
Highlighting the reasons for selling the stake, Mr Hexter said that the EBRD had originally invested in VimpelCom in its early, critical stages of development. VimpelCom has since developed into one of Russia's leading mobile telecoms providers, demonstrating an ability to access a variety of funding sources, and the EBRD's support as an institutional investor is no longer essential, he added.
Mr Hexter stressed that the Bank aims to continue its close working relationship with VimpelCom, particularly through its next phase of development and regional expansion.
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