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Market dynamics and advances in technology have created favorable conditions for greater cooperation between telecom providers and digital media companies. As leaders in their respective industries, MegaFon and Mail.ru are natural partners for such cooperation and have been exploring multiple commercial projects aimed at creating strategic and economic value for both companies. Any agreements between the companies would be on an arms-length and fully commercial basis.
While the Company acknowledges past and ongoing dialogs between MegaFon and some of the shareholders of Mail.ru, currently there is no certainty that MegaFon will become a shareholder of Mail.ru. If any agreement leading to MegaFon becoming a Mail.ru shareholder were to be reached, MegaFon and Mail would continue operating as separate entities on an arms-length basis, with both management teams dedicated to preserving each other’s corporate culture and governance, ensuring continuity of operating and product development activities, and focusing co-operation on areas of mutual strategic and economic benefits.