NEW YORK-Through an add-on offering of American Depository Shares, FGI Wireless Ltd., an Illinois corporation, is looking to reduce substantially its ownership in Vimpel-Communications, a Russian cellular carrier that went public on the New York Stock Exchange in November.
FGI Wireless is a privately held company established in 1993 as an investment vehicle for non-Russian venture capitalists and institutions to invest in Vimpel-Com, said the preliminary prospectus for the planned sale of 3.458 million ADS’s representing 2.59 million shares of common stock.
FGI’s sole asset is 3.3 million shares, or 17.1 percent of outstanding of Vimpel-Com common stock. After the sale, FGI would hold 712,122 shares, or 3.7 percent of the common stock.
When it went public Nov. 15, becoming the first Russian company listed on the Big Board, Vimpel-Com’s stock opened at a share price of $20.50. The cellular carrier’s stock closed May 5 at $33.75 per share.
Vimpel-Com will not receive any proceeds of the proposed secondary stock offering, for which Donaldson, Lufkin & Jenrette Securities Corp., New York, is lead underwriter.
Doing business under the brand name of Bee Line Cellular Communications, Vimpel-Com reported approximately 64,000 subscribers as of March 31 in the Moscow license area, where, according to the company, it is the only Digital Advanced Mobile (D-AMPS) cellular system. D-AMPS uses Time Division Multiple Access technology, and Vimpel-Com’s system uses equipment supplied by Ericsson Inc.
Vimpel-Com also has been awarded a license for personal communications services in the 1800 MHz frequency range for the Moscow license area, which comprises the greater metropolitan area and its population of more than 15 million. The carrier has begun its PCS buildout with Alcatel equipment, and the network is scheduled to go into commercial operation by June 30.
