The agreement to end the joint venture was announced earlier at: https://corp.megafon.com/investors/news/capital_market_releases/20170712-0830.html. As a result of the transactions required to effect this, MegaFon has acquired PJSC VimpelCom’s 50% interest in Euroset, resulting in MegaFon owning 100% of Euroset, including all its assets and liabilities. At the same time, PJSC VimpelCom, the Russian subsidiary of VEON, has acquired half of Euroset’s retail stores amounting to approximately 1,800 stores, and will pay RUB 1.25 billion, subject to certain adjustments, as its share of Euroset’s outstanding obligations.
Sergey Soldatenkov, CEO of MegaFon, said: “We highly appreciate our partnership with VEON in Russian retail over the last five years. We believe that our division of the Euroset assets will allow our companies to follow our own strategies in retail, resulting in optimization of mobile distribution in Russia. MegaFon already owns an extensive mono-brand retail network. Accordingly, we will continue to pursue our own retail strategy focused, inter alia, on retention of our presence in multi-brand retail network. We believe we will be able to benefit from using that channel to acquire high-value digital clients and maximize the life-time value of our subscribers through improved quality of service and digital products based on better understanding of the client’s needs.”
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Notes to Editors
MegaFon PJSC is a leading Russian integrated telecommunication service provider, operating in all segments of the telecommunications markets in Russia, and in the Republics of Abkhazia, South Ossetia and Tajikistan. MegaFon is a recognized market leader in the provision of mobile data services, was the first operator in Russia to launch commercial operation of a third generation (3G) network and was the first operator in the world to launch commercial operation of an LTE-Advanced (4G) data network. MegaFon is traded on the Moscow Exchange and the London Stock Exchange under the symbol MFON. Additional information about MegaFon and the products and services provided by MegaFon can be found at: http://www.megafon.ru.
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