Kyivstar Fails To Hold AGM

Storm, an owner of 43.49% of Kyivstar, did not participate in Kyivstar’s AGM, so the meeting again failed to take place. An AGM can be held only if at least 60% of the shareholders are present. The first attempt to hold an AGM in April 2005 also failed, due to lack of participants. Russia’s Alfa Group owns 100% of Storm and is trying to merge Kyivstar with the Russian mobile operator Vimpelcom. Alfa continues to bicker with Telnor and wants to show the Norwegian Company, which is also Kyivstar and Vimpelcom shareholder, that this merger is crucial. Concorde Capital: Failure to hold an AGM in April and conflicts between the two main shareholders of Kyivstar have not affected the company’s activities and Kyivstar has enjoyed the most rapid subscriber base growth rate in Ukraine over the last six months. Therefore, it is doubtful that the latest AGM failure will affect the company’s activities in the short term. In the long run, we expect the conflict will be resolved, as the situation is not beneficial for either of Kyivstar’s shareholders.