Telia sells 6% in MegaFon for 22.5 bln rbl, cuts stake to 19%

MOSCOW, Oct 3 (PRIME) -- Sweden telecom giant Telia Company has agreed to sell some 6% of its shares of Russian mobile operator MegaFon, or 38.5 million ordinary shares per 585 rubles, for a total of 22.522 billion rubles, and its interest in the operator is now roughly 19%, Telia Company said on Tuesday.

“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. As we are now focusing on the Nordic and Baltic regions within the framework of our New Generation Telco strategy, it is natural that we reduce our exposure to MegaFon,” Telia Company’s President and CEO Johan Dennelind said.

“Even after the sale, Telia Company will remain the second largest shareholder in the company and we will continue our constructive co-operation with the main owner USM Group to create value for all shareholders.”

As a consequence of the transaction, MegaFon will be re-classified from an associated company to a financial investment from October–December.

The proceeds of the placing are payable in cash on customary settlement terms.

BofA Merill Lynch, Citi and Morgan Stanley acted as joint bookrunners for the deal.

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