Telia Company has fully divested its stake in Megafon, after agreeing to sell its remaining 19.0 percent shareholding to Gazprombank . The deal is in line with Telia’s strategy to focus on the Nordics and Baltics. The shares will be sold at RUB 514 per unit, raising gross proceeds of RUB 60.4 billion, with a pro forma positive effect on net debt to EBITDA expected at 0.3x.
Reports started in June about Telia’s intention to sell. It then raised SEK 3.2 billion through a Megafon share placement in early October.Gazprombank is the third largest bank in Russia and is funding the acquisition with cash in immediately available funds, with no funding or credit commitments from Telia or any other party. Telia noted that the European Union and the US have placed several Russian banks, among them Gazprombank, under sectorial sanctions, but added that the deal does not involve any financing of Gazprombank, in any form.
