Russian operator group MTS offloaded its Armenian unit MTS Armenia to Cyprus-based Fedlico Group after finally gaining regulatory approval.
Interfax reported, the sale is for 100% of MTS Armenia, as well as the sale of the MobiDram payment system, a wholly owned subsidiary of MTS Armenia.
MTS gained regulatory approvals from the State Commission for the Protection of Economic Competition and the Public Services Regulatory Commission (PSRC), which threatened to scupper the deal last year.
The PSRC approved the deal in mid-November and this is the second attempt from the Russian operator group to sell MTS Armenia. The first attempt was in spring 2023, which was rejected without a reason.
"The transaction is a continuation of implementing the MTS Group's transformation strategy aimed at further developing the ecosystem and core business in Russia. When there are favourable offers, MTS sells non-core assets or assets with limited potential for growth in value, directing the proceeds to developing key ecosystem business in Russia," said MTS in a statement to Interfax.
MTS Armenia recorded RUB1.1 million (US$12,300) in operating profit and RUB3.4 million (US$38,000) revenue in Q3 2023, up from RUB606,000 and RUB1.9 million respectively.