April 6, 2015

MTS Ukraine announced signing of an agreement on selling a part of its fixed business to the operator Vega (Farlep Invest PJSC), which is a part of SCM holding of Rinat Akhmetov.

The cost of the transaction is confidential. According to the director of SV Consulting Oleh Stefaniuk, approximately one year ago these assets of MTS Ukraine were estimated at UAH 30 mln, however, after the inflation, their price may have dropped by 30-40%.

The press release of MTS Ukraine states that the area of fixed telephony is not among the company's priorities, therefore, a decision was reached to sell this business and completely focus on development of 3G in Ukraine.

Forbes writes that the press office of Vega stated that the interest in the business of MTS Ukraine was caused by intersection of networks of the operators in Kyiv, Odessa and Ilichivsk. Now, due to the acquisition of the business of MTS Ukraine, Vega will increase the number of its subscribers approximately by 12000 people (2000 in Kyiv and 10000 in Odessa Region).

This is not the first acquisition of this year for Vega. The company purchased the Zhytomyr provider MyLanPlus in March and Belnet in Odessa in autumn 2014. The representatives of the company assured that they are currently negotiating purchase of assets with a number of other local providers.

As of today, Vega operates in69 administrative unitsof 23 regions of Ukraine. Presently, Vega serves around 540,000 telephony subscribers and more than 159,000 users of Internet access service.

The network of MTS Ukraine PJSC covers more than 98% of the territory of Ukraine. The company has more than 21.59 mln subscribers. The company owns licenses for providing mobile (standard GSM-900/1800, CDMA-450), stationary and international/intercity connection, as well as international roaming on five continents. In 2013 the company's proceeds were UAH 9.965 bln.

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