The Russian telco MTS has signed an agreement to sell its telecom operations in Ukraine to Telco Solutions and Investments, which is controlled by Bakcell, part of the NEQSOL Holding international group of companies.
In accordance with the agreement, MTS’s wholly owned subsidiary Allegretto has sold its 100% stake in its Dutch subsidiary Preludium, the sole shareholder of VF Ukraine, for $734 million in cash, including approximately $84 million earn-out, based on an enterprise value of the company of $848 million. The transfer of the shares is expected to take place shortly.
Commenting on the sale, MTS president & CEO Alexey Kornya said: “This deal is in line with our revamped strategy to build innovative digital services on top of a strong telecoms foundation. As our core market, Russia accounts for over 90% of group revenue. Given the small share of our Ukrainian operations in our overall business, we reaffirm our commitment to fulfilling our updated dividend policy and continuing to generate attractive returns for our shareholders.”