In a statement, Veon says that Telenor held approximately 157 million of its shares, representing around 8.9% of the group’s outstanding equity. The transaction is in line with Telenor’s previously announced intention to fully sell its holding in Veon, and as a result the free float in Veon Group has increased from around 34.9% to 43.8%. The shares were placed at $2.35 each, an effective discount of 3.7% on the previous day’s closing price.
Commenting on the development, Ursula Burns, Veon’s chairman and CEO, said: “With Telenor’s sale our free float has increased from approximately 34.9% to 43.8%, representing an effective increase of approximately 25%. With the removal of the market overhang from Telenor’s anticipated divestment holding, we believe this final sale by Telenor, which has been anticipated for some time, is a positive development for the group.”
Veon is headquartered in Amsterdam and its assets include Russia’s VimpelCom.