ArmInfo. The Armenian government has received the right to sell its 20-percent share in MTS Armenia telecom operator. The corresponding decision was made at its Cabinet meeting on August 7.
As noted in the rationale for the decision, this intention is based on an agreement between the Office of the Prime Minister of Armenia and Fedilco Group Limited, which owns 80% of the shares of MTS Armenia CJSC, to provide right to an option to buy back shares, According to the agreement, the state will be able to sell 20% of the shares that were donated to it by the company in February 2024. The company, in turn, undertakes to pay the state $50 million for these shares within 90 days. This transaction will be carried out in accordance with the law on the privatization of state property, and will not result in additional expenses or losses for the budget. Instead, it is expected to generate significant revenue in the event of a sale.
Recall that in January 2024, MTS announced the completion of the sale of 100% of the shares of its subsidiary in the Republic of Armenia, MTS Armenia CJSC (Viva trademark, serves 2.3 million subscribers) to the Cypriot Fedilco Group Limited. The transaction also included MobiDram CJSC, a payment system that provides financial services in the Armenian market and is a 100% subsidiary of MTS Armenia. Before the deal, MTS Armenia was owned by Aramayo Investments Limited, which was itself 100% owned by MTS through the Luxembourg Allegretto Holding. According to media reports, the beneficiaries of Fedilco Group Limited are Zhe Jang and Konstantin Sokolov. The sale of 100% of the shares of MTS Armenia to the Cypriot Fedilco Group Limited from Aramayo Investments Limited was approved by the Armenian Regulator in November 2023. A previous application by Fedilco was rejected by the Commission in April 2023 due to concerns that it could potentially "threaten the national security or state interests of the Republic of Armenia."
