November 25, 2019
MTS announced the sale of a 100% stake in Vodafone Ukraine to Bakcell, an Azerbaijani company.
MTS, through its subsidiary Allegretto Holding S.a.r.l (Luxembourg), selling a 100% stake in Preludium BV (Netherlands) to Telco Solutions and Investments, a Bakcell-controlled company. The cost of the sale is USD 734 mln, including deferred payment of USD 84 mln.
According to MTS President Alexei Korn, the deal is in line with the company's new strategy - focusing efforts on the Russian market, which provides 90% of the Group’s revenue.
Vodafone Ukraine is the second largest mobile operator in the country. Serves 19.7 million subscribers. It is a member of the MTS Group, the majority shareholder of which is businessman Vladimir Yevtushenkov. Revenues for July-September 2019 amounted to UAH 4.3 bln, and net profit - USH 887 mln.
Bakcell is a mobile communications operator founded in 1994 in Azerbaijan. Serves more than 3 mln subscribers. The company is a part of the international Holding NEQSOL, which includes oil and gas, high-tech, telecommunications and construction companies.