MOSCOW: Russian telecoms operator Vimpelcom is to pay an extra $250 million in interim dividends, or $0.19 per share, as it seeks shareholder support for its proposed $6+ billion acquisition of Wind Telecom.
"The additional interim dividend underscores the fact we are committed to growing our platform in order to generate cash and return it to shareholders," spokeswoman Yelena Prokhorova said on Thursday. The payment date will be set as soon as possible.
Vimpelcom plans to hold a special general meeting on March 17 to vote on the cash-and-shares deal for Egyptian tycoon Naguib Sawiris’s telecoms assets, Orascom Telecom and unlisted Italian group Wind.
The deal is backed by key Russian shareholder Alfa-Group but opposed by Norwegian partner Telenor which is seeking a court injunction in London.
Analysts said the dividend move was designed to attract investor attention to the stock and reassure minority shareholders — whose March 17 vote will be decisive — of the company’s commitment to paying strong dividends.
"However, should the proposed deal … be completed, Vimpelcom’s ability to pay out dividends will deteriorate," Uralsib analysts said in a note.
Analysts said Sawiris would likely not be entitled to the additional dividend as it should be paid out before completion of the proposed deal with Wind Telecom.
Vimpelcom recommended interim dividends of $0.46 per American depositary share in November and has paid a total of $600 million to shareholders for 2010.
