Telia announced its decision to sell 35 million shares representing approximately 5.65 percent stake in MegaFon to institutional investors.
The strategy of Telia Company is to focus on telecom operations in the Nordics and Baltics. MegaFon is focusing on Russia.
Telia Company’s direct equity stake in MegaFon will be reduced to 19 percent from the present approximately 25.2 percent of its issued share capital.
Telia Company has sold 38.5 million ordinary shares in MegaFon at a price of RUB 585 per ordinary share, raising gross proceeds of RUB 22,522 million (equivalent to approximately SEK 3.2 billion) with pro forma positive effect on net debt to EBITDA by approximately 0.1x.
“As we are focusing on the Nordic and Baltic regions within the framework of our New Generation Telco strategy, it is natural that we reduce our exposure to MegaFon. Even after the sale, Telia Company will remain the second largest shareholder in the company and we will continue our co-operation with the main owner USM Group to create value,” said Johan Dennelind, Telia Company’s President and CEO.
Telia Company now owns approximately 19 percent of MegaFon. MegaFon will be re-classified from an Associated Company to a Financial Investment from the fourth quarter, 2017. The transaction has no impact on Telia Company’s guidance for full year 2017.
Telia Company said BofA Merrill Lynch, Citi and Morgan Stanley are acting as Joint Bookrunners for the Placing.
