MegaFon to Buy Mail.Ru Group
26 December 2016 (14:24)
UrBC, Yekaterinburg, December 26, 2016. The telecommunications provider MegaFon reports its Board of Directors plans a general meeting to get shareholders’ votes to approve the purchase of 11.5m A shares and 21.9m ordinary shares in Mail.Ru Group Limited; this controlling shareholding (63.8% of voting shares) currently belongs to USM Group, MegaFon’s press service reports.
Under the terms of the prospective deal, MegaFon is to purchase 11.5m A shares and 21.9m ordinary shares in Mail.Ru Group’s authorized capital (63.8% of the Group’s voting shares) from New Media and Technology Investment LP, New Media Technologies Capital Partners Limited, and Ardor Finance Limited (all parts of USM Group) for $640m. This amount is to be paid at the time of the transaction, plus, another $100m is to be paid to the seller one year later.
The goal is to benefit from the two companies’ synergy, the benefits being, among others, a wider range of products and services on offer, more promotion options for MegaFon’s digital services, the launch of VKmobile app for VKontakte users, and much else besides.
Once the deal has been through, both MegaFon and Mail.Ru will remain on the market as full-fledged players. The two companies will have independent management teams to support their respective existing corporate cultures and corporate governance practices, ensure further growth and new produce development, and coordinate strategically and financially beneficial joint projects. Any future agreements between the two parties will go along regular free market rules.
Under the terms of the prospective deal, MegaFon is to purchase 11.5m A shares and 21.9m ordinary shares in Mail.Ru Group’s authorized capital (63.8% of the Group’s voting shares) from New Media and Technology Investment LP, New Media Technologies Capital Partners Limited, and Ardor Finance Limited (all parts of USM Group) for $640m. This amount is to be paid at the time of the transaction, plus, another $100m is to be paid to the seller one year later.
The goal is to benefit from the two companies’ synergy, the benefits being, among others, a wider range of products and services on offer, more promotion options for MegaFon’s digital services, the launch of VKmobile app for VKontakte users, and much else besides.
Once the deal has been through, both MegaFon and Mail.Ru will remain on the market as full-fledged players. The two companies will have independent management teams to support their respective existing corporate cultures and corporate governance practices, ensure further growth and new produce development, and coordinate strategically and financially beneficial joint projects. Any future agreements between the two parties will go along regular free market rules.
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