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MOSCOW, Nov 25 (PRIME) -- Major Russian mobile operator MTS has signed a binding agreement to sell its Ukrainian unit to Telco Solutions and Investments, controlled by Azeri operator Bakcell, a part of NEQSOL Holding, for U.S. $734 million, MTS said on Monday in a statement.
“In accordance with the agreement, MTS’s wholly owned subsidiary Allegretto sells its 100% stake in its Dutch subsidiary Preludium B.V., the sole shareholder of VF Ukraine, for cash consideration of $734 million, including approximately $84 million earn-out, calculated by reference to an enterprise value of Preludium B.V. of $848 million. The transfer of Preludium B.V. shares is expected shortly,” MTS said.
MTS CEO Alexei Kornya said, “This deal is in line with our revamped strategy to build innovative digital services on top of a strong telecoms foundation. As our core market, Russia accounts for over 90% of the group revenue. Given the small share of our Ukrainian operations in our overall business, we reaffirm our commitment to fulfilling our updated dividend policy and continuing to generate attractive returns for our shareholders.”
According to the statement, MTS’ board of directors recommended on November 23 to approve a special dividend of 13.25 rubles per ordinary share, or 26.50 rubles per American depositary receipt (ADR), totaling 26.5 billion rubles, based on the company’s performance in January–September and the deal to sell VF Ukraine.
An extraordinary general meeting of MTS’ shareholders is scheduled for December 30 with the record date for the shareholders entitled to participate in the meeting set for December 6. The meeting is supposed to set the record date for the shareholders entitled to receive special dividends for January 10, 2020.
The news propelled MTS’ common shares up 3.52% to 315.90 rubles on the Moscow Exchange as of 10.12 a.m. Moscow time.
(63.7101 rubles – U.S. $1)
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