MTS ready to consider tapping strategic investor for subsidiary bank after getting market evaluation via IPO

MOSCOW. April 9 (Interfax) - MTS has not yet determined for itself the threshold below which the company will not reduce its share in the subsidiary bank, as it prepares for a public offering: there are different scenarios and the choice will depend on the situation, head of the company Vyacheslav Nikolaev said.

"It [the end share of MTS] will depend, in fact, on many factors. So far we are considering tapping a strategic investor in this area [after the IPO], because the bank is developing well. It seems to me that after confirmation of the price, which will happen as a result of the IPO, there may be different strategies," Nikolaev told reporters on the sidelines of the "Telecom 2024" forum organized by the Vedomosti newspaper.

"There's no specific threshold I see. Let's see, it will very much depend on the situation. In any case, we have very harmonious and well-developed fintech," he said.

As reported, in mid-March, the MTS Bank board approved a secondary offering of its ordinary shares in an amount of up to 3.6 billion rubles. The lender may increase its authorized capital by 3.593 billion rubles, up to 18.6 billion rubles, by placing an additional 7,187,042 ordinary shares with a par value of 500 rubles each. The shares may be placed via public subscription. The limit volume of the additional issue corresponds to approximately 19.3% of the increased authorized capital of the bank and 24% of its current capital.

MTS itself said at the same time that its board of directors took note of a possible reduction of the company's stake in the bank's authorized capital from 99.8% to at least 80.5% if the additional share issue is placed in full. At the same time, the Board of Directors instructed MTS management to "continue measures aimed at further reducing the share of MTS in the authorized capital of MTS Bank".

MTS Bank ranked 24th in terms of assets in the Interfax-100 ranking at the end of 2023.