17 Apr 2019 18:47

MegaFon to squeeze out holders of 0.8% stake for 659.26 rubles per share

MOSCOW. April 17 (Interfax) - MegaFon subsidiary Megafon Finance has notified the owners of the last 0.8% ordinary shares in the telco that it will buy them out for 659.26 rubles each.

MegaFon said in a statement that MegaFon Finance bought a 20.36% stake in the telco on December 27, 2018. It and affiliated companies own 99.2% as a result.

"Accordingly, MegaFon Finance became entitled to proceed with a squeeze-out of the remaining shareholders of the Company pursuant to Article 84.8 of Federal Law No. 208-FZ on Joint Stock Companies dated December 26, 1995," the company said.

Payment of the squeeze-out price will be made to holders of ordinary shares as at June 3, 2019 no later than 25 days after that date.

The company announced its delisting from the LSE last year. The price per share under the buyback of 18.6% of shares was 659.26 rubles. Following the buyback, MegaFon Finance, which bought back the shares, converted the GDRs it had acquired into shares, becoming the owner of 139.6 million shares in MegaFon. Its stake in MegaFon, including shares belonging to its affiliates, was 78.84%. At the end of December, MegaFon Finance sent a mandatory offer for the purchase of 131,212,843 ordinary shares of MegaFon.

The second offer involved the buyback of 20.36% of shares, including 18.96% belonging to Gazprombank , which fully divested itself of MegaFon capital.

A remaining 0.8% of shares are in free float on the Moscow Exchange .

USM Group currently owns 70.32% of MegaFon and MegaFon Finance owns 28.88%.