MegaFon Buys 50% Stake in Euroset

UrBC, Yekaterinburg, February 27, 2018. MegaFon and Veon Ltd finalized settling their respective rights to Euroset, the Russian company’s press service reports.

The two parties agreed to stop doing business together at Euroset in July 2017.

‘Following a series of transactions, MegaFon purchased a 50% stake in Euroset from VEON’s Russian subsidiary VympelKom (all assets and liabilities included), which means MegaFon now has 100% ownership of the business. VympelKom, in its turn, purchased a half of Euroset’s retail outlets (around 1,800 stores altogether) and is also going to pay out RUR 1.25bn (subject to adjustments) to cover a portion of Euroset’s unpaid debts,’ the press service says.

‘We are grateful to VEON for the partnership we had in the retail sector for the last five years. We are positive that dividing Euroset’s assets between us will enable both companies to focus more on their respective strategies, which will improve Russia’s mobile phone and communication retail market. MegaFon already runs a wide single-brand outlet network, so the goal is to retain our share of the multi-brand market and use it to attract more digital customers and LTV subscribers through better quality service and digital products on offer,’ says MegaFon’s Director-General Sergey Soldatenkov.

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