TEAM comments on purchase of VEON Armenia CJSC

YEREVAN, October 29. /ARKA/. Armenian company TEAM commented on the purchase of VEON Armenia CJSC (VEON Armenia, Beeline brand).

On Thursday, the world's leading communications and internet service provider VEON Ltd. announced the conclusion of a contract on the sale of its company in Armenia VEON Armenia CJSC (Beeline brand) to Team.

"On October 29, the transaction on the acquisition of 100% of the shares of VEON Armenia CJSC by TEAM LLC was successfully completed. Thanks to painstaking work for about six months, the parties managed to conclude a deal in this difficult period," the company said.

As Hayk Yesayan, the general director of TEAM LLC noted, immediately after the signing of the deal, the company feels personally responsible for helping the country in this difficult time.

"I am sure that every employee of our new and large family, which will be formed from the employees of TEAM LLC and VEON Armenia CJSC, will spare no effort to work and create an Armenian technological miracle for the good of the motherland," Yesayan said.

The procedures are officially scheduled to be completed very soon. The transaction amount is EV / EBITDA multiplied by 2.9, based on 2019 EBITDA.

The VEON side, commenting on the deal, said that the deal is in tune with the company’s  desire to simplify the Group's structure and strengthen its operational orientation in markets with attractive opportunities for long-term growth.

About Deal on Beeline Shares

Brothers Hayk and Alexander Yesayan, the founders of the Team Company,  announced their intention to acquire VEON Armenia.

On June 8, the Team Company applied to the State Committee for the Protection of Economic Competition of Armenia, and the company VEON Armenia applied to the Public Services Regulatory Commission and the State Committee for the Protection of Economic Competition for consideration of room for concluding a deal. Both regulators approved the deal on July 10.

The financial source of the transaction for the purchase and sale of the company at an agreed price will be credit funds, in connection with which Team and Ardshinbank reached an agreement on the provision of the financial means by the bank. According to the loan agreement, the return of funds will be guaranteed by the pledge of the shares of VEON Armenia.

Taking into account the fact that the high technology industry ministry did not oppose the deal, the regulator decided to allow VEON Armenia to transfer the ownership of 100% of the company's shares to Team after their purchase in order to secure the loan.

The permit is valid for 6 months after the decision is made by the Public Services Regulatory Commission, during which the companies will be required to notify the regulator of the completed transaction.

Sale History 

The Yesayans, the founders of Ucom, has been negotiating the possibility of purchasing the Beeline brand in Armenia, VEON Armenia, since the end of 2019. The company filed a relevant application to the regulator on December 30, 2019, but later, due to disagreements between the brothers and other Ucom shareholders, all negotiations were suspended, as well as consideration of the application.

On April 9, th Yesayans and Ucom top managers decided to terminate their work duties, then more than 800 employees of the company wrote letters of resignation.

On April 20, Hayk Yesayan, who together with his brother Alexander owns slightly less than 6% of Ucom shares, announced his final departure from the company after his offer to buy out the majority share (94.01% of shares) for about AMD 34 billion (equivalent to $ 70 million) was not accepted, and the directorial board approved Hayk Khachatryan for the post of general director.

The Yesayans themselves decided to create their own telecommunications company, which was registered on April 20, 2020 under the name AllNet, then renamed TEAM OJSC, received a license from Public Services Regulatory Commission for operating in the telecommunications marker and soon plan to provide services under the TEAM.Telecom Armenia brand.

About Companies

The founders of the telecommunications company Team LLC (TEAM.Telecom Armenia brand) are brothers Hayk and Alexander Yesayan (founders of Ucom). The new company was registered on April 20, 2020 under the name AllNet, then it was renamed TEAM JSC and received a license to operate in the telecommunications sector.

VEON Armenia CJSC (Beeline trademark) provides fixed and mobile communication services. Since April 2007 100% of shares of VEON Armenia CJSC (formerly ArmenTel CJSC) belong to the Veon Group, which is one of the world's largest integrated telecommunication operators. -0-

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22:44 10/29/2020