MegaFon and VEON to end their Euroset joint venture
Moscow, Russian Federation (12 July 2017) - Public Joint Stock Company "MegaFon" (LSE: MFON), a leading Russian provider of integrated digital services ("MegaFon" or the "Company") and VEON Ltd., a leading global provider of telecommunications and digital services serving more than 235 million customers, have agreed to end their Euroset joint venture.
Euroset is Russia's largest mobile and electronics retail network and is co-owned by both PJSC VimpelCom, the Russian subsidiary of VEON, and MegaFon.
Based on the agreement reached between the parties, MegaFon will acquire PJSC VimpelCom's 50% interest in Euroset, resulting in MegaFon owning 100% of Euroset. Euroset will survive as an operating company. PJSC VimpelCom will acquire half of Euroset's retail stores.
Sergey Soldatenkov, CEO at MegaFon, said: "We are grateful to VEON for our partnership in retail over the last five years. The transaction will allow MegaFon and VEON to pursue their independent retail strategies and optimise mobile distribution in Russia. MegaFon will be able to improve quality of service for our clients. Euroset will remain and continue to evolve as a mobile retailer. "
The agreement is subject to relevant regulatory approvals and other conditions precedent. The transaction will be completed only after such conditions precedent have been satisfied and regulatory approvals have been obtained.
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Notes to Editors
MegaFon PJSC is a leading Russian provider of integrated digital services, operating in all segments of the telecommunications markets in Russia, and in the Republics of Abkhazia, South Ossetia and Tajikistan. MegaFon is a recognized market leader in the provision of mobile data services, was the first operator in Russia to launch commercial operation of a third generation (3G) network and was the first operator in the world to launch commercial operation of an LTE-Advanced (4G) data network. In February 2017, MegaFon acquired a 15.2% equity interest (which represented 63.8% of the voting shares) in Mail.Ru, a leading company in the Russian-speaking internet market. MegaFon is traded on the Moscow Stock Exchange and the London Stock Exchange under the symbol MFON. Mail.Ru is traded on the London Stock Exchange under the symbol MAIL. Additional information about MegaFon and the products and services provided by the telecom segment can be found at http://www.megafon.ru and information related solely to Mail.Ru can be found at http://www.mail.ru.
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