Telia Company Sells Remaining Stake in MegaFon for $1.04 Billion
October 31 2017 - 4:10AM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Scandinavian telecom operator Telia Company AB
(TELIA.SK) said Tuesday it has agreed to sell its remaining 19%
stake in Russia-based MegaFon (MFON.MZ), raising gross proceeds of
60.4 billion rubles ($1.04 billion).
The sale, to Russia's Gazprombank (GZPR.RS), follows a similar
move last month when Telia sold its remaining direct stake in
Turkcell Iletisim Hizmetleri AS (TKC) as it positions itself to
focus on core Nordic and Baltic regions.
Gazprombank has been placed under sectorial sanctions by the
European Union and the U.S. which prohibits U.S. and E.U. companies
from financing entities that are subject to the sanctions. However,
this deal has been financed with cash in immediately available
funds and there is no funding or credit commitments from Telia
Company or any other party.
"This transaction does not involve any financing of Gazprombank
or any trade in stock or other securities issued by Gazprombank and
the sanctions are therefore not applicable," Telia said in a
statement.
BofA Merrill Lynch, CitiGroup and Morgan Stanley have assisted
Telia Company in this transaction with CitiGroup being the leading
bank. White & Case and Houthoff have assisted as legal
advisors.
-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@domchopping @WSJNordics
(END) Dow Jones Newswires
October 31, 2017 03:55 ET (07:55 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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