\tRussian operator group MTS agreed a deal to offload its subsidiary Vodafone Ukraine to Azerbaijani operator Bakcell for $734 million, as part of a broader strategy focusing on expanding its digital services play.<\/p>\n
In a statement, MTS president and CEO Alexey Korny said the deal advances the company’s aim of building “innovative digital services on top of a strong telecoms foundation”, noting Ukraine was a minor concern for the operator, which derives 90 per cent of group revenue from its “core market, Russia”. <\/p>\n
MTS used the Vodafone brand since 2008 under a licensing deal.<\/p>\n
Yusif Jabbarov, \u0421\u0415\u041e of Bakcell parent company NEQSOL, said in a related Vodafone statement the acquisition advances its international expansion plans: “Vodafone Ukraine\u2019s business situation, rate of growth and effective performance ensure a reliable basis for further development. Therefore, we are ready to invest in order to implement innovations and advanced technology in Ukraine.”<\/p>\n
Vodafone said the sale won’t impact operations in Ukraine, with all “tariff plans, services and products” set to remain after the transaction is completed.<\/p>\n
GSMA Intelligence figures for Q3 placed Vodafone Ukraine as the second-largest player in the market by connections (including cellular IoT) with 20.3 million, almost a third of the Ukrainian market. It ranks behind Veon\u2019s brand Kyivstar on 28 million connections.<\/p>\n
MTS said its board had also recommended approving a special dividend amounting to RUB13.25 ($0.21) per ordinary share.<\/p>\n","protected":false},"excerpt":{"rendered":"
Russian operator group MTS agreed a deal to offload its subsidiary Vodafone Ukraine to Azerbaijani …<\/p>\n
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