OREANDA-NEWS On 05 October Telenor ASA and Altimo announced an agreement to combine their common assets in VimpelCom and Kyivstar to create a leading emerging markets mobile operator.

The parties have reached an agreement to combine their holdings in OJSC VimpelCom and Kyivstar into a new jointly-owned mobile telecoms operator, VimpelCom Ltd. The united company will provide high-quality integrated mobile telecom services in Russia, Ukraine and other CIS countries, as well as Georgia, Vietnam, Cambodia and Laos. VimpelCom Ltd. will seek to expand its operations in other rapidly developing markets in Europe, Asia and Africa, becoming one of the world’s leading players in the industry.

VimpelCom Ltd. is incorporated in Bermuda, will be headquartered in the Netherlands and listed on the NYSE.

Key benefits of the proposed transaction should include the following:

·         Establishment of a leading emerging markets mobile operator with significant in-market and international growth opportunities;

·         Participation in the value creation from common management of the combined assets;

·         Attractive dividend potential from cash-generative Russian and Ukrainian operations;

·         Alignment of Telenor and Altimo`s interests going forward in Russia and Ukraine in a listed entity; and

·         Resolution of all outstanding disputes between Telenor and Altimo.

The parties have agreed to suspend all their ongoing legal proceedings and take action to withdraw or settle them prior to the transaction being completed. The governance structure agreed for VimpelCom Ltd. was designed to significantly reduce the potential for new disputes between the shareholders.