Armenian regulator approves sale of MTS Armenia to Cypriot company

ArmInfo.The Public Services Regulatory Commission of Armenia (PSRC) approved the application of  MTS Armenia CJSC (Viva-MTS brand, a subsidiary operator of the Russian MTS PJSC) to complete a transaction to sell shares of the company. ArmInfo was informed about this by the PSRC's press service.

"At a meeting on November 15, the Commission agreed to the sale of  100% of the company's shares," said PSRC press secretary Liana  Azizan.

The regulator's decision notes that the department agrees to conclude  a transaction for the sale of 100% of the shares of MTS Armenia to  Fedilco Group L.t.d., registered in Cyprus.  The transaction must be  closed within six months from the date of publication of the final  decision.  After the conclusion of the transaction, MTS Armenia will  cease to be a member of the MTS Group - the Russian  telecommunications operator -Mobile Telesystems PJSC. The transaction  amount is not disclosed.  Earlier it was reported that on November 3,  the regulator received an application according to which Fedilco  Fedilco Group Limited, registered in Cyprus, intends to purchase 100%  of the shares of MTS Armenia from Aramayo Investments Limited (a  company registered under the laws of Cyprus).

However, the Ministry of High-Technological Industry, in response to  a request from PSRC dated February 2 of this year, stated on March 30  that the issue had been discussed with the interested departments of  the Republic of Armenia, as a result of which the ministry, within  the framework of the powers entrusted to it, objects to the  implementation of the transaction, since it "threatens national  security or state interests of the Republic of Armenia". As a result,  in April 2023, PSRC banned the deal.

To the next request from the Regulator dated November 7, 2023, the  Ministry of High-Technological Industry responded that it does not  object to the deal, also emphasizing the absence of comments from the  National Security Service of the Republic of Armenia on this matter.  Considering the abovementioned, PSRC gives permission for the  transaction.

The Regulator's decision can be challenged in the Commission itself  within 30 days from the date of its entry into force or within 2  months in the Administrative Court. Appealing a decision does not  suspend its validity or execution.

The "MTS Armenia"  telecommunications company (trademark  VivaCell-MTS, entered the Armenian telecommunications market in 2005)  maintains leadership among Armenian telecommunications operators in  the list of largest taxpayers. According to the State Revenue  Committee of the Republic of Armenia, for January-September 2023, MTS  Armenia paid 12.6 billion drams to the state treasury, of which 4.3  billion drams in direct taxes (including profit tax, income tax), and  5.2 billion drams - in VAT. The company dropped from 5th to 12th  place over the year in the list of 1000 large taxpayers.