MTS folds stakes in scooter rental, fintech businesses into ecosystem co with valuation of 130 bln rubles

MOSCOW. July 3 (Interfax) - Russian mobile provider MTS has completed the vertical integration of its fintech and scooter rental businesses as part of a transformation of the group's corporate governance begun last December.

MTS reported on the disclosure wire Wednesday that it has folded its 99.31% stake in MTS Fintech LLC and 84.61% stake in UrentBike.ru LLC into Ecosystem MTS LLC.

The noncash contribution was valued at 130 billion rubles by an independent appraiser, the company said.

Following the transaction, Ecosystem MTS's charter capital will increase by 10 billion rubles to 50 billion rubles. The difference between the amount of the noncash contribution and the increase in charter capital will go into the company's capital surplus.

As part of the corporate restructuring, Ecosystem MTS will take over five of the group's key non-telecom businesses, namely fintech, IT, media, advertising technology and scooter and bike sharing. This company is wholly owned by PJSC MTS, the holding company of the group that consolidates the telecom and retail business.

In mid-March, PJSC MTS transferred stakes in five IT, media and advertising companies to Ecosystem MTS, also in the form of a noncash contribution that was valued at 145.45 billion rubles.