According to the press service of MTS, the company

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PJSC Mobile TeleSystems (MTS) announced the closing of the deal to sell 100% of the shares of its subsidiary in the Republic of Armenia, MTS Armenia CJSC (Viva-MTS brand). The new owner of the former MTS subsidiary is the Cypriot company Fedilco Group Limited. The transaction also included the subsidiary of MTS Armenia, MobiDram CJSC. This is a payment system providing financial services in the Armenian market.
has received all the 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.

"The deal is a continuation dominican republic whatsapp number database of the implementation of the MTS Group transformation strategy aimed at further development of the ecosystem and core business in Russia. If there are favorable offers, MTS sells non-core assets or assets with limited potential for growth in value, directing the proceeds to the development of the key ecosystem business in Russia," a representative of the MTS press service told a ComNews correspondent.

MTS does not disclose the amount of the deal. However, FG Finam analyst Leonid Delitsyn suggested how much it could have cost the Cypriot company: "The approximate cost is 12 billion rubles. The media have long been discussing the progress of this deal, so you can find both higher (15 billion rubles) and lower (6 billion rubles) estimates, calculated in various ways. I am proceeding exclusively from the number of subscribers."

Freedom Finance Global Leading Analyst Natalia Milchakova explained how the deal will affect MTS's financial performance: "In our opinion, the deal will affect the net debt indicators and its ratio to OIBDA towards a decrease, which will have a positive effect on the company. That is, MTS's net profit may increase by the amount of income received from the sale, and net debt will decrease by the amount of the debt of the now sold Armenian subsidiary. MTS's net debt to OIBDA ratio was relatively low and was only 1.8 at the end of Q3 2023. But during 2023, the indicator grew, mainly due to the growth of the company's and its branches' debt. We believe that MTS will be able to pay good dividends based on the funds received from the sale of the Armenian subsidiary by the end of 2023."

Leonid Delitsyn also pointed out the positive aspects of the sale of the Armenian branch: "The deal will have a positive impact on MTS's profits and will contribute to possible dividends that the stock market expects from the company. As soon as the market receives the final signal that there will be dividends, MTS's capitalization will also grow. The shares have already risen in price, although not by much - by 1.5%. True, the news about the possible IPO of MTS Bank, which is working in the same direction, also affected the situation, and therefore it is difficult to separate their influence."