Telia agrees to sell 19% in MegaFon to Gazprombank for 60 bln rbl

MOSCOW, Oct 31 (PRIME) -- Sweden’s Telia Company has agreed to sell its 19% stake in Russian mobile operator MegaFon to local bank Gazprombank for 60.4 billion rubles as the telecom giant sticks to its strategy to focus on the Nordics and the Baltics, Telia Company said on Tuesday in a statement.

“Telia Company is one of the founders of MegaFon and we have since the inception actively contributed to its success of becoming a mobile and digital leader in Russia. After recently commencing our exit from MegaFon by placing 6.2% of our holding on the open stock market, this divestment now puts an end to Telia Company’s ownership in MegaFon in accordance with our strategy to focus on the Nordics and Baltics,” Telia Company’s President and CEO Johan Dennelind said.

Telia Company sells its 19% in MegaFon, which has been classified as a financial investment, at a price of 514 rubles per share. Gazprombank agreed to a lock-up of six months from the date of the sale, subject to certain exceptions.

Gazprombank is the third largest bank in Russia and is funding the acquisition with cash in immediately available funds and there is no funding or credit commitments from Telia Company or any other party.

(57.8716 rubles – U.S. $1)

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