As a result of English Commercial court ruling, Telenor failed to block a shareholders meeting due on March 17th to vote of VimpelCom’s merger with Egypt’s Weather Investments.
Telenor, which holds 36 percent shares in VimpleCom, has been opposing the proposed USD 6.8 billion VimpleCom-Orascom merger deal and had failed to get shareholders’ vote support for scheduled VimpleCom meeting on March 17 to nullify the deal.
Based on its reservations, Telenor had commenced the arbitration to enforce claimed pre-emptive rights and to block the scheduled shareholder meeting on March 17th to vote on the deal.
Based on court ruling, Vimpelcom will be able to go ahead with its shareholder vote, however Vimpelcom took undertaking to the court that if Telenor wins the arbitration case, it will receive the pre-emptive shares, and that Telenor’s shares will not be diluted below 25 percent plus one share in the time between the closing of the Wind deal and a ruling in the arbitration case.
Vimpelcom said in a statement that the court rejected Telenor’s request for an injunction suspending the extraordinary shareholders meeting until its arbitration claim is settled.