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VimpelCom subsidiary launches tender for Golden Telecom stock
By Susanna Moon
Chicago, Jan. 18 - Vimpel-Communications (VimpelCom) said its indirect subsidiary Lillian Acquisition, Inc. began a cash tender offer for the outstanding common shares Golden Telecom, Inc. under a previously announced merger agreement.
The offer and withdrawal rights will expire at midnight ET on Feb. 15.
On Dec. 21 the companies said VimpelCom would acquire Golden Telecom in a $105-per-share cash tender offer in a deal valued at $4.3 billion.
Golden Telecom entered into a definitive agreement with two wholly owned subsidiaries of VimpelCom, VimpelCom Finance BV and Lillian Acquisition, Inc.
The companies said the tender offer would be followed by a second-step merger, in which any shares of Golden Telecom common stock not tendered into the offer would be converted into the right to receive $105 per share in cash.
An $80 million termination fee is included in the agreement, according to an 8-K filing with the Securities and Exchange Commission.
VimpelCom said it expects the acquisition to boost its presence in the broadband, data and mobile markets.
The offer is contingent upon a minimum of 63.3% of the outstanding Golden Telecom shares being tendered in the offer.
VimpelCom was advised by UBS Investment Bank, and Golden Telecom was advised by Credit Suisse.
VimpelCom is a Moscow-based wireless telecommunications services company.
Golden Telecom, also based in Moscow, provides telecommunications and internet services in Russia and other countries of the Commonwealth of Independent States.
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