Vimpelcom not yet planning to change dividend policy, debt outlook over Djezzy sale
MOSCOW. April 18 (Interfax) - Vimpelcom Ltd is not for the time being planning to revise dividend policy of its 2014 debt outlook in connection with the sale of 51% of Algerian operator Djezzy, Vimpelcom CEO Jo Lunder told Interfax.
"We'll receive $4 billion cash as the result of the deal and plan to use this for deleveraging, but the debt will stay high," Lunder said.
"We're not yet planning to revise out dividend policy over this [the Djezzy deal]," he said, adding that the deal to sell the stake for $4 billion while retaining operational control was a good signal for investors and would strengthen Vimpelcom's financial position.
In January 2014, Vimpelcom Ltd announced a change to its dividend policy: starting in 2014 the company will pay only $0.035 per share until its net debt/EBITDA ratio drops to less than 2 from 2.3 at present.
