UPDATE: Telia sells 19% in MegaFon to Gazprombank for 60 bln rbl

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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 in a statement 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. 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, Russia’s third largest bank, 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.

Holding USM, which holds 56.32% in MegaFon, said it will do everything possible to keep Gazprombank as the mobile operator’s strategic investor after Telia’s withdrawal from MegaFon’s capital.

“USM welcomes Gazprombank as a new MegaFon shareholder and hopes that Gazprombank like USM has long-term investment plans for the operator and will behave with respect to the company’s interests and maintenance of MegaFon’s financial and operating sustainability over a lengthy period,” USM said in a statement.

(57.8716 rubles – U.S. $1)

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