Armenian government  received right to sell its share in MTS Armenia

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."