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Telenor reaches settlement with WR Com Enterprises Ltd.
Telenor will pay EUR 33.6 million to WR Com Enterprises October 8th, 2003 -- Telenor ASA, Norway's largest telecommunications group, has reached a settlement with WR Com Enterprises Ltd., a Greek-Cypriot company. Under the terms of the settlement, Telenor will pay to WR Com Enterprises EUR 33.6 million. The background for the litigations is the claim of an alleged breach of contract when Telenor B-Invest AS sold COSMOTE Mobile Communications SA shares to WR Com Enterprises Ltd. and Telenor Greece AS acquired WR Com Enterprises Ltd's shares in Telenor B-Invest AS. Telenor B-Invest AS was a holding company with 30% of the shares in Greek mobile operator COSMOTE. Originally Telenor Mobile Communications AS and WR Com Enterprises Ltd. owned 73.33% and 26.67% of the shares in Telenor B-Invest AS, respectively.
In the autumn of 2000 Telenor B-Invest AS sold 8% of the total outstanding share capital in COSMOTE to WR Com Enterprises Ltd. Simultaneously Telenor Greece AS acquired all of WR Com Enterprises Ltd.'s shares in Telenor B-Invest AS. The alleged breach of contract arose from these transactions. In January 2003 the City court in Athens ruled in favour of WR Com Enterprises Ltd., Cyprus. According to the verdict, WR Com Enterprises claimed approximately NOK 530 million including interest against Telenor Mobile Communications AS. As a consequence of the settlement, all legal proceedings have been stopped and the arrest claim on Telenor's COSMOTE shares has been lifted. Following this settlement Telenor will reverse the previous expense provisions of approximately NOK 300 million, mainly on the levels for tax and interest expenses in the accounts. On May 6th, 2003, COSMOTE's shareholder structure was as follows:
Telenor is the largest provider of telecommunications services in Norway, and has substantial international mobile operations. Continued development of Telenor's mobile operations is essential to the Group's positioning as an international player in the telecommunications industry. For further information, please contact Mr. Dag Vangsnes, Executive Vice President, Telenor Mobile, in Norway on +47 917 89 427. Sources: Telenor, COSMOTE, INVgr. Related story:
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