Armenian PSRC going to reject application for sale of MTS Armenia shares

YEREVAN, April 10. /ARKA/. Armenia’s Public Services Regulatory Commission (PSRC) said it was not going to okay a change of ownership of MTS Armenia telecommunications company, which is a subsidiary of Russian MTS PJSC.

The PSRC is scheduled to meet on April 12 to officially announce its decision. MTS Armenia CJSC submitted January 26, 2023 a formal application saying that Fedilco Group Limited (registered in Cyprus) wishes to acquire from Allegretto Holding LLC (registered in Luxembourg) the latter’s  full shareholding in Aramayo Investment Limited (registered in Cyprus).

It is indicated that Allegretto Holding LLC belongs to the Russian telecommunications operator Mobile Telesystems PJSC (registered in the Russian Federation).

The PSRC said the Armenian Ministry of High Technologies Industry is against the deal (the law provides such an option in case the deal does not meet the requirements of PSRC or contains threats to the national security or state interests of the Republic of Armenia).

Taking into account the abovementioned, the PSRC commission decided to turn down the request.  

Earlier PSRC chairman Garegin Baghramyan said the deal could be fully closed by April 10. He said the application filed with the commission was forwarded to the Ministry of High Technologies Industry and the National Security Service, which were to  check whether the deal complied with state interests and national security.

MTS Armenia (trading as Viva-MTS) is a leading telecom operator in Armenia.

Mobile TeleSystems OJSC (MTS) is the largest communications operator in Russia and CIS countries. Together with its affiliated companies it serves around 88 mln subscribers in Russia, Armenia and Belorussia. Since June, 2000 MTS shares have been traded on the New York Stock Exchange under the symbol MBT. --0--

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17:03 04/10/2023