Nordic telecom operator Telia Company on Monday announced that it has has sold approximately 6 percent of its shares in Russia-based MegaFon for roughly $388 million (SEK 3.2 billion).
MegaFon operates in all segments of the telecommunications markets in Russia, and in the Republics of Abkhazia, South Ossetia and Tajikistan.
After the sale Telia Company owns roughly 19 percent of the issued share capital of MegaFon. The sale is in line with the strategy to focus on the Nordics and Baltics.
"Telia Company is one of the founders of MegaFon and we have since the inception actively contributed to its success of becoming a mobile and digital leader in Russia. As we are now 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 constructive co-operation with the main owner USM Group to create value for all shareholders," says Johan Dennelind, Telia Company's President and CEO.
As a concequence of the transaction, MegaFon will be re-classified from an Associated Company to a Financial Investment from the fourth quarter, 2017.