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.
