Tuesday, January 23 2018 12:36
Emmanuil Mkrtchyan

The buyer of 100% of  the  cellular operating company "VivaCell" - MTS Armenia  is a Cypriot offshore company

The buyer of 100% of  the  cellular operating company "VivaCell" - MTS Armenia  is a Cypriot offshore company

ArmInfo. The buyer of 100% of the shares of the mobile operator of Armenia, the company VivaCell-MTS, was the Cyprus offshore company of Aramayo Investment Ltd. (ARAMAYO INVESTMENT S A).

Yesterday ArmInfo informed that according to the documents of the Public Services Regulating Commission , Aramayo Investment LTD will purchase  ultimately all 100% of the company's shares. It should be noted that (trade mark ) is the Armenian daughter of the Russian telecommunications giant  of MTS. The deal involved Russian citizens Pavel Masharov and Artem Vasiliev, who will acquire 0.005% of the shares, and then sell them to Aramayo Investment, Their role in the transaction is not highlighted.

Thanks to the database of the Cyprus register it became known that ARAMAYO INVESTMENTS LIMITED was registered as an offshore company numbered ?? 349745 December 3, 2015. The company is registered at 1065, Nicosia, Cyprus, in the building  of CAPITAL CENTER on the 9th floor. It is noteworthy that the director of this company is the one mentioned in the documents of the State Commission Pavel Masharov. More detailed information about the entrepreneur Masharov in the open sources could not be found.

The company is also mentioned in the Bloomberg database. According to it, through its subsidiaries, Aramayo SA deals with the processing of metals and alloys. The company also manages investment property and deals with financial investments. The company's branches are located in Switzerland, Great Britain, Germany, USA, France, Italy and Spain. The head office of the company is located in Geneva, Switzerland.

Meanwhile, the company with a similar  name ARAMAYO INVESTMENTS A is also registered in Panama. There is also another offshore company, possibly affiliated with it, COMERCIAL ARAMAYO, S.A.It is hard to say how close are  these two offshore companies connected - in Cyprus and Panama ,  but it is clear that in connection with the mentioning Masharov's name, the buyer of "MTS Armenia" was the Cyprus offshore.

In the opinion of independent observers, since the profile of the Cyprus offshore does not presuppose activity on the market of communication services, it can be assumed that, apparently, the transaction for the purchase of a mobile operator of Armenia from a Russian MTS company has a purely financial intermediate character.

Recall that the sale of "MTS Armenia" for the knowledgeable market participants did not come as a surprise, as during the past year the company seriously cut all its expenses, including advertising and social projects. Moreover, according to the analytical materials of the rating service of the "ArmInfo" Information Company, by the end of 2016 the company's revenue decreased by 20.7%, gross profit fell by 27.4%, net profit by 61%, the company's assets decreased by 13.4%. EBITA in recent years has been steadily declining - from 27.4% in 2014 to 11.08% by early 2017. Financial data for 2017 has not yet been made public.

Analysts are inclined to believe that after signing a peace agreement between Russian companies Sistema, which owns MTS, Rosneft, Bashneft and the Republic of Bashkortostan, the first one, who needed additional resources, decided to get rid of the ineffective Armenian asset. We note that on the eve of the international rating agency Fitch confirmed the long-term issuer default ratings (IDR) in foreign and national currency of AFK Sistema and MTS at "BB-" with a "negative" forecast.

POST A COMMENT
Input digits     


News
Taxable jobs 5% up in Armenia Taxable jobs 5% up in Armenia 
Binance and Binance Academy announce large-scale online educational  project Binance and Binance Academy announce large-scale online educational  project "Crypto School"
ArmSwissBank Brings Apple Pay to CustomersArmSwissBank Brings Apple Pay to Customers
Armenia participates in 80th session of UNESCAPArmenia participates in 80th session of UNESCAP
34th session of FAO Regional Conference will take place on May 14-17,  202434th session of FAO Regional Conference will take place on May 14-17,  2024
Armenian Economy Minister offers Japanese side to expand cooperation  in agriculture and water resources managementArmenian Economy Minister offers Japanese side to expand cooperation  in agriculture and water resources management
Vassilis Maragos assures: All efforts to be made for further EU  assistance to Armenian NPP Vassilis Maragos assures: All efforts to be made for further EU  assistance to Armenian NPP 
Armenia to study Lithuania`s experience in energy sectorArmenia to study Lithuania`s experience in energy sector
Armenian banks` profit increased by 18.8% per annum in Q1 2024 thanks  to similar growth in loan portfolioArmenian banks` profit increased by 18.8% per annum in Q1 2024 thanks  to similar growth in loan portfolio
Caring for nature, we have started with ourselves - Team Telecom ArmeniaCaring for nature, we have started with ourselves - Team Telecom Armenia
Delegation of Armenia`s Ministry of Finance hold important meetings  in Washington Delegation of Armenia`s Ministry of Finance hold important meetings  in Washington 
Monitoring of effectiveness of budget programmes to be conducted in  Armenia Monitoring of effectiveness of budget programmes to be conducted in  Armenia 
Up to 10% cashback from GetTransfer with IDBank cardsUp to 10% cashback from GetTransfer with IDBank cards
South Africa expresses interest in developing cooperation with  Armenia in jewelry and cutting industry South Africa expresses interest in developing cooperation with  Armenia in jewelry and cutting industry 
Armenia, UAE discuss possibilities of increasing mutual trade volumesArmenia, UAE discuss possibilities of increasing mutual trade volumes
Yerevan is trying to demonstrate to its Anglo-Saxon `bosses` its  readiness to reduce economic cooperation with Iran - political  scientistYerevan is trying to demonstrate to its Anglo-Saxon `bosses` its  readiness to reduce economic cooperation with Iran - political  scientist
KfW stands ready to support Armenian government  in implementation of  new projectsKfW stands ready to support Armenian government  in implementation of  new projects
Cooperation with German Fichtner company discussed Cooperation with German Fichtner company discussed 
Armenia, China can record much greater results both in economic and  political dialogue and cultural cooperation - MPArmenia, China can record much greater results both in economic and  political dialogue and cultural cooperation - MP
U.S. capital important for Armenia`s mining industryU.S. capital important for Armenia`s mining industry
Expert: When there is no trust between private and public sectors,  unfortunately, there is no need to talk about right decisionsExpert: When there is no trust between private and public sectors,  unfortunately, there is no need to talk about right decisions
Armenia introduces new rules for labeling carbonated, non-carbonated  watersArmenia introduces new rules for labeling carbonated, non-carbonated  waters
Arsen Bazikyan: Armenia`s agriculture is transforming into  agribusinessArsen Bazikyan: Armenia`s agriculture is transforming into  agribusiness
Armenia to join e-CMR protocolArmenia to join e-CMR protocol
Armenia`s government changes Kaps reservoir project funding Armenia`s government changes Kaps reservoir project funding 
Armenian FM, minister of economy of Saudi Arabia discuss development  of economic ties Armenian FM, minister of economy of Saudi Arabia discuss development  of economic ties 
IMF upgrades Armenia`s GDP growth forecast for 2024 from 5% to 6%,  expecting inflation at 3.1% and unemployment at 13%IMF upgrades Armenia`s GDP growth forecast for 2024 from 5% to 6%,  expecting inflation at 3.1% and unemployment at 13%
Armenia`s Deputy PM, Veolia Vice President discuss problems with  water supply to consumers Armenia`s Deputy PM, Veolia Vice President discuss problems with  water supply to consumers 
EEC Board decided to liberalize certain categories of precious  metals` import/exportEEC Board decided to liberalize certain categories of precious  metals` import/export
Earthquakes, drought could affect Armenia`s debt sustainability -  EFSDEarthquakes, drought could affect Armenia`s debt sustainability -  EFSD
Converse Bank starts initial placement of next AMD, USD bonds in  amount of AMD 5 billion, $10 millionConverse Bank starts initial placement of next AMD, USD bonds in  amount of AMD 5 billion, $10 million
USAID releases fact sheet following Joint EU-US-Armenia High Level  Meeting in Support of Armenia USAID releases fact sheet following Joint EU-US-Armenia High Level  Meeting in Support of Armenia 
Expert: Armenia has the potential to get high-quality and abundant  harvest of apricots this yearExpert: Armenia has the potential to get high-quality and abundant  harvest of apricots this year
EFSD presents assessment of potential impact of natural disasters on  debt sustainability of Armenia, Kyrgyzstan and TajikistanEFSD presents assessment of potential impact of natural disasters on  debt sustainability of Armenia, Kyrgyzstan and Tajikistan
Armenia is considering appointing attache in Silicon ValleyArmenia is considering appointing attache in Silicon Valley
Astana proposes joint investment programmes in Yerevan Astana proposes joint investment programmes in Yerevan 
Armenia, Kazakhstan have unrealized economic potential - premier Armenia, Kazakhstan have unrealized economic potential - premier 
Armenia, EU discuss expansion of economic cooperation Armenia, EU discuss expansion of economic cooperation 
Transavia airline starts operating route Lyon-Yerevan-LyonTransavia airline starts operating route Lyon-Yerevan-Lyon
EAEU and its economic principles should not be mixed with political  ambitions - Nikol PashinyanEAEU and its economic principles should not be mixed with political  ambitions - Nikol Pashinyan
Armenia, Australia to strengthen cooperation in high-tech field Armenia, Australia to strengthen cooperation in high-tech field 
Leasing EXPO -2024 officially opened in YerevanLeasing EXPO -2024 officially opened in Yerevan
Araratbank to double leasing portfolio by end of 2024Araratbank to double leasing portfolio by end of 2024
Armenian, Kazakh passenger and cargo carriers to be exempted from  road and environmental taxes on reciprocal basis Armenian, Kazakh passenger and cargo carriers to be exempted from  road and environmental taxes on reciprocal basis 
Economy Ministry jointly with Armenal, develop schemes to diversify  sales markets for enterprise`s productsEconomy Ministry jointly with Armenal, develop schemes to diversify  sales markets for enterprise`s products
Info about IT specialists leaving Armenia en masse has nothing to do  with reality - premierInfo about IT specialists leaving Armenia en masse has nothing to do  with reality - premier
WB improves Armenia`s   economic growth forecast for 2024 from 4.7%  to 5.5% WB improves Armenia`s   economic growth forecast for 2024 from 4.7%  to 5.5% 
Government is ready to share risks with agricultural insurersGovernment is ready to share risks with agricultural insurers
EIB to issue loan under energy efficiency programme to Armenia EIB to issue loan under energy efficiency programme to Armenia 
Deadline for filing personal income declarations in Armenia may be  extendedDeadline for filing personal income declarations in Armenia may be  extended
ADB intends to expand its areas of activity in ArmeniaADB intends to expand its areas of activity in Armenia
ADB forecasts 5.7% economic growth for Armenia in 2024ADB forecasts 5.7% economic growth for Armenia in 2024
Conversebank to present its Converse Leasing product at annual  Leasing ExpoConversebank to present its Converse Leasing product at annual  Leasing Expo
By rebranding, INGO Armenia IC begins new stage of developmentBy rebranding, INGO Armenia IC begins new stage of development
Some countries refusal to service Russian Mir bank cards against  common interests - Elvira NabiullinaSome countries refusal to service Russian Mir bank cards against  common interests - Elvira Nabiullina
USAID to invest additional $33mln in Armenia`s economy USAID to invest additional $33mln in Armenia`s economy 
Idplus Bonuses in Idram&IDBank ApplicationIdplus Bonuses in Idram&IDBank Application
Deputy PM: we are ready for any assistance to contribute cargo  aviation establishmentDeputy PM: we are ready for any assistance to contribute cargo  aviation establishment
Mkhitar Hayrapetyan on TV broadcasting agreement with RF: If our  proposals are not taken into account, we do not rule out possibility  of terminating agreement unilaterallyMkhitar Hayrapetyan on TV broadcasting agreement with RF: If our  proposals are not taken into account, we do not rule out possibility  of terminating agreement unilaterally
Armenia, Iran discuss organization of joint production in various  branches of economy Armenia, Iran discuss organization of joint production in various  branches of economy 
Read more


Exchange rates
25.04.2024
RUB4.220.04
USD388.60-1.44
EUR416.731.10
GBP485.984.24
CAD284.02-0.58
JPY24.99-0.21
CNY53.63-0.19
CHF425.54-2.14