10 Feb 2010 12:11

VimpelCom Ltd. chief gets option for 0.1% of company stock

MOSCOW. Feb 10 (Interfax) - VimpelCom Ltd. CEO Alexander Izosimov has received the option to buy 1.050 million common shares in the company, or the equivalent in depository subscriptions, per an agreement clinched on January 4, 2010.

VimpelCom Ltd. issued 1,025,620,440 common shares, so Izosimov's option would represent 0.102% of the overall number, according to documents filed with the Securities and Exchange Commission and available on the SEC website.

Izosimov also has the right to acquire 50,000 common shares (or subscription equivalent) for ten business days following the purchase deal for stock and American Depository Receipts (ADR) in VimpelCom and exchange of Kyivstar stock for VimpelCom Ltd. shares.

The price per share will be figured from the value of VimpelCom Ltd. ADR on the New York Stock Exchange at the close of trading on the day subsequent to the deal's completion.

Izosimov would lose the option right in the event the company is unable to become sole owner of VimpelCom Holdings, which itself will control all of the stock in Kyivstar either directly or indirectly. He would also forfeit the purchase right if he fails to exercise the option during those ten business days or retires from the company before exercising that right.

Per the agreement, Izosimov would be allowed to buy one million common shares or subscriptions, but only in if the company achieves financial targets stipulated in the agreement. VimpelCom retains the right to buy Izosimov's stake if he leaves the company before the end of 2011.

Alfa Group and Telenor are looking to merge VimpelCom and Kyivstar assets around VimpelCfom Ltd. On Tuesday, the company offered the holders of OJSC VimpelCom shares and Depositary Receipts to swap these securities for VimpelCom Ltd's own securities or cash.