MegaFon, Gazprombank, Rostec, USM Holdings to set up digital JV

MOSCOW, May 8 (PRIME) -- Russian mobile operator MegaFon, Gazprombank, state industrial corporation Rostec, and USM Holdings of businessman Alisher Usmanov will set up a a joint venture, MF Technologies (MFT), to develop digital services and implement projects in the digital economy, MegaFon said in a statement on Tuesday.

“Jointly with its partners, MegaFon plans to implement a number of digital projects, including creating software products to digitalize the operations of major companies and enterprises, and developing blockchain-based solutions,” the statement read.

“The most important project on which active work is already being conducted is the creation of a Financial Digital Platform on the basis of which the parties will develop hi-tech services, including payment, credit and other digital products.”

The partners will also create a fund, Digital JV, to invest in tech start-ups, the operator said.

MegaFon will contribute 11.5 million Class A shares of Mail.Ru Group Limited to MFT, comprising a 5.23% economic share, and providing 58.87% of votes.

Lefbord Investment Limited, a 100% subsidiary of MegaFon, is the current shareholder of MFT. Lefbord will sell a 35% stake in MFT to Gazprombank, a 9% stake to USM and an 11% stake to Rostec.

Following the transaction, Lefbord will own the remaining 45% of MFT. Under the deal, 100% of shares in MFT are valued at U.S. $450 million, which envisages a 29% premium to the market price of Mail.Ru GDRs as of May 4.

MegaFon will retain 21.94 million shares directly, representing an economic stake of 10% in Mail.Ru, and has no plans to sell these shares.

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