Sweden’s Telia Company has agreed to sell its remaining 19.0% holding in Russian cellco MegaFon to Gazprombank. The move is in accordance with Telia Company’s strategy to focus its group operations on the Nordics and Baltics. After recently commencing its exit from MegaFon by placing a 6.2% stake on the open stock market, the latest divestment to Russia’s third largest bank puts an end to Telia Company’s ownership in MegaFon, which is majority-controlled by Russian business magnate Alisher Usmanov.
Telia Company is selling the 19.0% MegaFon stake for a total gross price of RUB60.4 billion (USD1.04 billion) or RUB514 per share, whilst Gazprombank has agreed to a share sale lock-up of six months from the date of transaction completion, subject to certain exceptions.
Telia’s statement notes that the transaction does not involve any financing of Gazprombank or any trade in stock or other securities issued by Gazprombank, and therefore EU/US sanctions placed on Russian banks (including Gazprombank) are not applicable in this case.