Vimpelcom Ltd.

management holding. Controls VimpelCom, Kyivstar and a number of assets in other CIS countries, also operates in Cambodia, Laos and Vietnam. Shareholders – Altimo (44.7% of voting shares, 39.2% of ordinary shares), Telenor (36% of voting shares, 39.6% of ordinary shares). Capitalization – $18.6 billion. Revenue (US GAAP, 2010) – $10.5 billion. Net profit – $1.67 billion.

Several sources close to the company's shareholders told Vedomosti about the meeting of the Vimpelcom Ltd. board. Determining the final amount of dividends for 2010 is one of the items on its agenda.

Last year, Vimpelcom already paid interim dividends of $600 million. These funds were taken from the cash flow of the Russian Vimpelcom, which thus paid a record dividend in its history. In February 2011, Vimpelcom announced that it would increase the size of interim dividends by $250 million – to $850 million. Vedomosti’s sources did not say what amount the board will approve today. But last week, the board of directors of the Russian Vimpelcom recommended paying its shareholder – Vimpelcom Ltd. – dividends of 7.95 billion rubles ($283 million at today’s exchange rate). Vimpelcom will also pay shareholders approximately that much, according to a source close to one of the members of its supervisory board.

In this case, by the end of 2010, all Vimpelcom shareholders could earn about $1.1 billion, and the largest ones – Altimo and Telenor – $431 million and $435.4 million, respectively.

VimpelCom, which paid the first part of interim dividends in the fourth quarter of 2010, had a negative net cash flow at the end of 2010 (minus 1.9 billion rubles, or $61.8 million at the average quarterly exchange rate), while Kyivstar had a net cash flow of 1.6 billion Ukrainian hryvnia ($201.8 million). It turns out that on the eve of the merger with Nagib Sawiris' Wind Telecom (who will receive 20% of the economic interest in the merged company), VimpelCom will give all the money not spent on investments to its existing shareholders.

Spokespeople for Vimpelcom Ltd., Altimo and Telenor declined to comment.

Vimpelcom Ltd. Shareholders to Receive Record Dividends