MTS to sell Vodafone Ukraine to Bakcell for $734m

Alexey Kornya MTS NEW.jpg

Russian operator MTS has entered into an agreement to sell Vodafone Ukraine to Bakcell, a subsidiary of NEQSOL Holding for an approximate $734 million.

Under the terms of the agreement, MTS subsidiary Allegretto s.a.r.l. will sell its 100% stake in its Dutch subsidiary Preludium BV, which is a full shareholder of Vodafone Ukraine.

The move comes as MTS doubles down on its commitment to Russia as its main region and maximising opportunities in this market.

“This deal is in line with our revamped strategy to build innovative digital services on top of a strong telecoms foundation,” said Alexey Kornya (pictured), president & CEO of MTS. “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.”

Under the new change of ownership, the company will still continue to operate under the Vodafone brand with business operations, which includes the provision of services to customers, interaction with partners, suppliers and contractors, are to remain the same.

 “With the acquisition of Vodafone Ukraine, second largest telecommunications provider in the Ukrainian market, we continue rolling out our strategy of international expansion and entering new markets by companies of NEQSOL Holding group. Telecommunications are among our group’s priority businesses. Therefore, we are constantly investing in innovative and reliable telecommunications solutions,” said Yusif Jabbarov, СЕО of NEQSOL Holding. “Vodafone Ukraine’s business situation, rate of growth and effective performance ensure a reliable basis for further development. Therefore, we are ready to invest in order to implement innovations and advanced technology in Ukraine”.