Kyivstar shareholders hold EGM

Yesterday shareholders of Kyivstar, leading Ukrainian mobile operator, held the first shareholder meeting since 2004. They voted to elect new supervisory board (consisting of five SPVs controlled by Telenor and four SPVs controlled by Altimo), and to pay UAH 3.48 bln (about USD 0.63 bln) dividends for 2004-2005 years. Shareholders also decided to hire Ernst&Young to make IFRS audit for 2006 and 2007. Alexander Paraschiy: Kyivstar now does not have legal impediments to make audit of its financials – this is important for Telenor (which consolidates Kyivstar’s financials) and holders of Kyivstar Eurobonds (traded ~2,000 bps below Ukrainian sovereign yield curve). Altimo’s decision to attend EGM (after couple of years of ignoring the meetings) we relate to November’s decision of New York Federal Court. The Court decided to fine Altimo by USD 100 ths for each day of failure to attend EGM, starting from December 4, 2008 (Altimo already accumulated USD 1.2 mln fine obligations).