Armenian government intends to sell its 20% stake in Viva Armenia for $50 million
YEREVAN, August 7: /ARKA/. The Armenian government plans to sell its 20% stake in Viva Armenia for $50 million. At a government meeting on Thursday, the decision was made to grant permission to sign a put option agreement.
According to the rationale for the decision, the government decree of February 29, 2024 states that the Republic of Armenia accepted 20% (110,000 shares) of MTS Armenia CJSC shares, valued at 1,000 drams each, as a gift from Fedilco Group Limited. A total of 550,000 shares have been issued.
The company has proposed concluding a put option agreement with the government. In accordance with the agreement, the company will have the right to buy back the donated shares in the future under the terms stipulated by the agreement, subject to certain conditions.
The option agreement establishes that, given that the company (buyer) and the RA Government (seller), represented by the Prime Minister's Office, are the respective legal and beneficial owners of 80% and 20% of Viva Armenia CJSC shares, the buyer agrees to grant the seller an option to sell the option shares.
If the seller notifies the buyer of exercising the option, the buyer must pay the seller a total compensation amount of $50 million within 90 days of completing the transaction. This process will be carried out in accordance with the RA Law "On Privatization of State Property."
About Viva
Viva (Viva Armenia CJSC, formerly VivaCell) received a license to operate in 2004. In September 2007, after selling 80% of its shares, Viva became a subsidiary of the Russian company Mobile TeleSystems (MTS). Following the co-branding initiative in 2008, the company's logo was updated to "VivaCell-MTS."
In January 2024, Viva announced a change in ownership and left the Russian MTS Group.
Fedilco Group Limited, a company registered in Cyprus, is the new shareholder of Viva Armenia CJSC. Zhe Zhang and Konstantin Sokolov are the ultimate beneficiaries of Fedilco Group Limited.
On February 29, 2024, the government of Armenia accepted a 20% stake in MTS Armenia CJSC as a gift from Fedilco Group Limited. Today, the company has a wide service network of 74 service centers in Yerevan and the regions where MobiDram branches also operate.-0-