Russian telecom operator VimpelCom (NASDAQ:VEON) 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.
Eric Volkman has no positions in VimpelCom. The Motley Fool has no positions in VimpelCom. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.