MTS Exits Armenian Market, With Fedilco Group Taking Over Viva-MTS
2024-02-04 13:55:00| Source:Telecomtalk
Russian mobile operator MTS (Mobile TeleSystems) has sold 100 percent of its Armenian unit, MTS Armenia, to Fedilco Group after receiving regulatory approval. Accordingly, Viva-MTS announced a change of its shareholder in a recent announcement. The transaction also included MobiDram, a payment system providing financial services in the Armenian market, a 100 percent subsidiary of MTS Armenia.
Regulatory Approvals Secured
MTS said it received all corporate approvals necessary for the transaction, as well as permits from the regulatory authorities of the Republic of Armenia: the State Commission for the Protection of Economic Competition and the Public Services Regulatory Commission.
Strategic Importance and Investment Plans
"Viva-MTS has always attracted the attention of significant enterprises both locally and internationally, as a company with high profitability and effectively managed assets, promising in terms of future investments," Viva-MTS said.
"Viva-MTS is a rich mix of management cultures and business models, laying the ground for the Company’s competitive advantage and uniqueness impossible to replicate."
MTS Armenia has more than two million mobile subscribers. The official announcement noted that Viva-MTS invests from its profits, is not pledged or tasked with credit commitments, and is financially self-sufficient. While financial terms of the transaction were not disclosed, the company said the investments will remain at the same level.
As reported by TelecomTalk in June 2023, Viva-MTS launched Armenia's first 5G Network. The company noted that it was the first to introduce 4G as well as 3G networks in the region. Reportedly, the company prioritises the adoption of green environmental technologies in its mobile communication infrastructure.
Considering the strategic importance of MTS Armenia for Armenia, Fedilco Group intends to transfer 20 percent of the shares of MTS Armenia to the Republic of Armenia, free of consideration. Based in Cyprus, Fedilco Group is owned by European and Asian investors.