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MarketScreener Homepage  >  Equities  >  MOSCOW INTERBANK CURRENCY EXCHANGE  >  Megafon PAO    MFON   RU000A0JS942


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MegaFon : completes acquisition of 12.5% stake in LLC Forpost

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12/27/2017 | 02:09am EDT

Pursuant to the decision taken by the Company's Board of Directors on 25 October 2017, as earlier reported at: https://corp.megafon.com/investors/news/capital_market_releases/20171026-0939.html, MegaFon has completed the acquisition of a 12.5% stake in Forpost LLC ('Forpost'), the holding company for Talmer LLC, a systems integrator and complex IT solutions provider in Russia, from its sole shareholder, Mr. Anton Cherepennikov.

The transaction will allow MegaFon to take an important step towards implementation of its digital strategy in the corporate and government sectors, as it will provide enhanced competencies in Information and Communication Technologies (ICT) and facilitate the delivery of customized ICT turnkey projects to our clients.

In addition, the Acquisition will enable the Company to create a procurement alliance with Talmer LLC, whereby the latter will act as the procurement partner for MegaFon and its subsidiaries and will help to achieve economies of scale in many procurement areas.

The consideration for the Acquisition was US$ 3.125 million, paid in rubles on 26 December 2017. MegaFon has also obtained an option (i) to buy an additional 12.5% stake in Forpost within the 12-month period from the completion of the Acquisition at fair market value, but not to exceed the amount of the consideration paid for the initial 12.5% stake, and (ii) to sell its entire interest back to Mr Cherepennikov at any time depending on the performance of the procurement alliance or under certain other conditions set forth in the transaction materials.

Anna Serebryanikova, Chief Operating Officer of MegaFon, commented: 'The acquisition of a stake in Forpost is in line with our digital strategy for B2X aimed at developing digital ICT expertise and offering complex IT and integrated solutions to our corporate and government clients. Also, in line with our ongoing focus on operational excellence, the Forpost acquisition will help us make our procurement process more competitive and efficient.'

For More Information:

Notes to Editors

MegaFon PJSC is a leading Russian integrated telecommunication service provider, 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. MegaFon is traded on the Moscow Exchange and the London Stock Exchange under the symbol MFON. Additional information about MegaFon and the products and services provided by MegaFon can be found at: http://www.megafon.ru.

Cautionary Statement Regarding Forward Looking Statements

Some of the information in this document may contain or refer to projections or other forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as 'expect', 'believe', 'anticipate', 'estimate', 'forecast', 'intend', 'will', 'could', 'may', or 'might' the negative of such terms or other similar expressions. The Company wishes to caution you that these statements are only predictions, and are based upon various assumptions which are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control. We may not achieve or accomplish these plans or predictions. The Company does not necessarily intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries in which the Company operates, as well as many other risks specifically related to the Company and its business and operations.

Statement Regarding Inside Information

Some of the information in this document may be inside information. The subject matter, the identity of the issuer, the identity of the persons making the notification and their titles, and the date and time of the notification are all as set forth above.

OJSC MegaFon published this content on 27 December 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 December 2017 07:09:13 UTC.

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Gevork Artyunovich Vermishyan Chief Executive Officer & Executive Director
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Anna Andreevna Serebryanikova Chief Operating Officer & Director
Alexandr Anatolyevich Barunin Chief Financial Officer
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