24 Jan 2024 13:59

MTS concludes deal to sell business in Armenia

MOSCOW. Jan 24 (Interfax) - PJSC MTS has announced the sale of its business in Armenia to Cyprus' Fedilco Group Limited, the telecom company said in a press release.

This involves the sale of 100% of the shares in CJSC MTS Armenia, as well as the sale of the CJSC MobiDram payment system, a wholly owned subsidiary of CJSC MTS Armenia.

The company has received the necessary corporate approvals and permits from Armenia's regulators, namely from the State Commission for the Protection of Economic Competition and the Public Services Regulatory Commission (PSRC).

The PSRC in mid-November approved the application for the sale of the business in Armenia to Cyprus' Fedilco Group Limited. As reported, MTS Armenia would no longer be considered a member of the MTS Group upon conclusion of the transaction.

MTS sold its business in Armenia on the second attempt. The local regulator was already considering a similar application for a deal in the spring of 2023, though rejected it without announcing a reason.

"The transaction is a continuation of implementing the MTS Group's transformation strategy aimed at further developing the ecosystem and core business in Russia. When there are favorable offers, MTS sells non-core assets or assets with limited potential for growth in value, directing the proceeds to developing key ecosystem business in Russia," MTS' press service told Interfax.