MTS Armenia Company Issues Clarification

MTS Armenia Company has issued a clarification regarding the 9th item on the agenda for the upcoming meeting of the Public Services Regulatory Commission (PSRC).

As a reminder, the agenda for the PSRC meeting scheduled for January 17 includes a draft decision to refuse approval for the transaction involving the transfer of control over MTS Armenia LLC.

The company has provided the following clarification:

The draft decision to refuse approval for the transaction involving the transfer of control over MTS Armenia LLC is related to the application submitted by MTS Armenia LLC to the PSRC on August 29, 2023, for the approval of this transfer. In this application, the company requested the PSRC's consent for the transaction in which the indirect shareholder of the company, Mobile TeleSystems PJSC (MTS), would acquire 100 percent of the shares of MTS Armenia LLC from its direct shareholder, Aramayo Investments Limited.

Approval of this transaction and, consequently, its execution, would reduce the company's ownership chain, ensuring more efficient cooperation and corporate governance between MTS and MTS Armenia LLC, under the real control of MTS.

Essentially, the transfer of the shares would be an internal change within the group, allowing the company to remain a part of the MTS Group and continue to be controlled by MTS.

As per the agenda for the PSRC meeting on January 17, 2024, the approval of this transaction is subject to rejection.

The aforementioned transaction is unrelated to another application submitted by the company to the PSRC on November 3, 2023, requesting approval for the transaction where Fedilco Group Limited would acquire 100 percent of the shares of MTS Armenia LLC from its sole shareholder, Aramayo Investments Limited. This application was approved by the PSRC on March 15, 2023, under decision No. 397-A.