VimpelCom to pay final dividend 2012 of USD 0.35 per ADS; Announces
extraordinary dividend of USD 0.79 per ADS or USD 1.4 billion; Affirms
dividend guidelines: USD 0.80 per ADS or USD 1.4 billion per annum
AMSTERDAM, April 18, 2013
AMSTERDAM, April 18, 2013 /PRNewswire/ --"VimpelCom Ltd." ("VimpelCom",
"Company" or "Group") (NYSE:VIP), announces today that the Supervisory Board
has authorized the payment of VimpelCom's final dividend of USD 0.35 per ADS,
or USD 615 million, in relation to the Company's final 2012 results, bringing
the total dividend in relation to the Company's 2012 results to USD 0.80 per
ADS. The Supervisory Board also approved an extraordinary dividend of USD 0.79
per ADS in relation to the USD 1.4 billion the Company received following
Altimo's conversion of its 128.5 million preferential shares into common
shares on April 16, 2013. Each ADS represents one common share. The total
dividend payment amount will be approximately USD 2.0 billion.
The record date for the Company's shareholders entitled to receive the
dividends has been set for April 29, 2013. The ex-dividend date is April 25,
2013. It is expected that the dividend will be paid by May 15, 2013. The
Company will make appropriate tax withholdings of up to 15% when the dividend
is paid to the Company's ADS depositary, The Bank of New York Mellon.
The Supervisory Board has announced the affirmation of VimpelCom's dividend
guidelines. The group aims to pay out at least USD 0.80 per share per year
assuming not more than 1,757 million common shares are issued and outstanding.
Jo Lunder, Chief Executive Officer comments: "Our strategy of profitable
growth and increasing cash flows has provided strong results in 2012, enabling
us to announce the payment of USD 0.35 final dividend per common share. In
addition, it has been decided that the proceeds from the conversion of
Altimo's preferential shares into common shares will be distributed to our
shareholders. In total we aim to pay USD 2.0 billion in dividends. Going
forward, we remain committed to pay annual dividends of at least USD 0.80 per
common share, in line with our current dividend guidelines."
The goal of the Dividend Guidelines is to clarify the context of returns to
investors of the Company both in terms of company value increase (capital
gain) and cash return. The Company's Dividend Guidelines will be annually
reviewed to ascertain that the Company will continue to maintain an efficient
capital structure, capable of securing its growth ambitions whilst honoring
its financial commitments on a sustainable basis.
The key elements of the guidelines are:
oIt is the Company's intention to pay a dividend which develops
substantially in line with the development of its operational performance.
oBarring unforeseen circumstances, the Company aims to pay out a
significant part of its annual operating free cash flow to its
shareholders in the form of dividends. Operating Free cash flow is defined
as "Net Cash from Operating Activities minus CAPEX", and can be derived
from the consolidated group financial statements.
oThe Group aims to pay out at least USD 0.80 per share assuming not more
than 1,757 million common shares are issued and outstanding.
The company will plan to pay the annual dividend in two tranches in cash. The
first tranche will be an interim dividend paid during the second half of the
year. The second tranche will be the final dividend that will be paid out
following the annual results announcement.
The precise amount and timing of dividends for a particular year will be
approved by the Supervisory Board, subject to the following constraints and
A. The Supervisory Board may consider various factors in determining the
amount of dividends such as investment opportunities, capital market
expectations , debt repayments schedules, desired level of leverage, share
repurchase programs and any other factors at the discretion of the Supervisory
B. All dividend decisions shall be taken assuring that the covenants or
other restrictions in agreements to which the Company or any subsidiary is a
party shall be satisfied and that the Company's operating subsidiaries shall
be in compliance with any law restricting the distribution of dividends.
C. The exact amount and timing of any dividend declarations and payments
will require, subject to the requirements of applicable law, the affirmative
vote of at least five (5) members of the Supervisory Board.
D. The financial terms referred to above are derived from and computed
on the basis of measurements that appear in the Company's audited annual
consolidated IFRS financial statements. Unless otherwise specified, all
financial measurements in this policy shall be calculated based on the
financial statements for the year ended prior to the decision being taken. For
interim dividends, these financial measurements shall be calculated based on
the financial statements for the quarters in the year ended prior to the
decision being taken (whether such financial statements are audited or
This release contains "forward-looking statements", as the phrase is defined
in Section 27A of the Securities Act and Section 21E of the Exchange Act,
relating to the timing and amount of future payments of dividends by
VimpelCom. These forward-looking statements are based on management's best
assessment of the Company's position and future market conditions and trends.
The actual outcome may differ materially from these statements and there can
be no assurance that VimpelCom will be able to pay dividends in the future as
described in these statements. Certain factors that could cause actual results
to differ materially from those discussed in any forward-looking statements
include the risk factors described in the Company's Annual Report on Form 20-F
for the year ended December 31, 2012 and other public filings made by the
Company with the SEC, which risk factors are incorporated herein by reference.
The Company disclaims any obligation to update developments of these risk
factors or to announce publicly any revision to any of the forward-looking
statements contained in this release, or to make corrections to reflect future
events or developments.
VimpelCom is one of the world's largest integrated telecommunications services
operators providing voice and data services through a range of traditional and
broadband mobile and fixed technologies in Russia, Italy, Ukraine, Kazakhstan,
Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Cambodia, Laos, Algeria,
Bangladesh, Pakistan, Burundi, Zimbabwe, Central African Republic and Canada.
VimpelCom's operations around the globe cover territory with a total
population of approximately 780 million people. VimpelCom provides services
under the "Beeline", "Kyivstar", "djuice", "Wind", "Infostrada" "Mobilink",
"Leo", "banglalink", "Telecel", and "Djezzy" brands. As of December 31, 2012
VimpelCom had 214 million mobile subscribers on a combined basis. VimpelCom is
traded on the New York Stock Exchange under the symbol (VIP). For more
information visit: http://www.vimpelcom.com
SOURCE VimpelCom Ltd.
Contact: Investor Relations, VimpelCom Ltd., Gerbrand Nijman, +31 20 79 77 200
(Amsterdam), Investor_Relations@vimpelcom.com, or Media and Public Relations,
VimpelCom Ltd., Bobby Leach, +31 20 79 77 200 (Amsterdam), email@example.com
Press spacebar to pause and continue. Press esc to stop.