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Russian telecom operator VimpelCom (NYSE: VIP ) will receive $1.4 billion from the conversion of a set of preferred shares into common stock by one of its leading shareholders, the company announced in a press release.
The shareholder, Altimo, is the telecom's wing of Alfa Group, one of Russia's largest and most long-standing conglomerates. Following the one-to-one conversion, which is to take place next April, Altimo's holding in VimpelCom common stock will increase by 3.5 percentage points to just over 56%. Its voting stake, however, will remain the same at 47.9%.
The $1.4 billion is the conversion premium Altimo is obligated to pay to modify its shareholding.