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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.