UPDATE: MTS agrees to sell Ukrainian unit, can pay 26 bln rbl special divs - Telecommunications - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

UPDATE: MTS agrees to sell Ukrainian unit, can pay 26 bln rbl special divs

(Adds Moscow Exchange quotes in last paragraph)

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.

УIn accordance with the agreement, MTSТs 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,Ф MTS said.

MTS CEO Alexei Kornya said, УThis 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.Ф

According to the statement, MTSТ 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 companyТs performance in JanuaryЦSeptember and the deal to sell VF Ukraine.

An extraordinary general meeting of MTSТ 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 MTSТ common shares up 3.52% to 315.90 rubles on the Moscow Exchange as of 10.12 a.m. Moscow time.

(63.7101 rubles Ц U.S. $1)

End

25.11.2019 10:52
 
 
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