Main owner of former MTS subsidiary in Armenia ready to buy out state's stake for $50 mln

YEREVAN. Aug 7 (Interfax) - The Armenian government may sell its 20% stake in telecom company Viva Armenia (formerly MTS Armenia) for $50 million.

The decision granting the right to sign an option agreement with Cyprus-based Fedilco Group Limited, which currently owns 80% of CJSC Viva Armenia, was approved at a government meeting on Thursday.

The justification published on the government website said that Armenia received the 20% stake in CJSC MTS Armenia owned by Fedilco Group Limited as a donation in 2024.

"Currently, the company has proposed entering into an option agreement with the government for the sale of these shares. Under the agreement, the company will obtain the right, upon meeting certain conditions, to repurchase the donated shares in the future under terms specified in the contract," the government said.

If the seller exercises the option, the buyer must pay a total compensation of $50 million within 90 days of the deal's completion, it said.

The decision aligns with requirements of the 2021-2026 government program, particularly regarding efficient state property management, it said.

The owners of Cyprus-registered Fedilco Group Limited are European and Asian investors, with Zhe Zhang and Konstantin Sokolov as ultimate beneficiaries.

In January 2024, PJSC MTS announced the sale of 100% of shares in CJSC MTS Armenia (operating under the Viva-MTS brand) and payment system CJSC MobiDram (100% subsidiary of CJSC MTS Armenia) to Fedilco Group Limited. In March 2024, CJSC MTS Armenia was renamed CJSC Viva Armenia.

In 2024, Fedilco Group Limited donated 20% of the company's shares to the Armenian state.

Fedilco Group Limited plans to expand its telecom assets in Armenia. In July, the Armenian Public Services Regulatory Commission approved Rostelecom's sale of 100% shares in its Armenian telecom subsidiary GNC-Alfa to Fedilco.