MTS COMPANY ACQUIRES "VIVACELL’S" SHARES
Vasak Tarposhyan
Hayoc Ashkharh
15 Sept 2007
"VivaCell" is like an 18 year-old beautiful lady, attracting many
fiancйs who want to get acquainted with her. However, it turns out
that the beautiful and god-looking lady doesn’t want to marry.
Especially, considering that she is rich and has many plans for
future."
Touching upon the rumors on the possible sale of "Viva Cell", the
Company’s Executive Director R. Yarikyan made such a statement in a
press-conference on July 12. No more than 2 month after this statement
"Viva Cell" was sold. 80 per cent of the company’s shares were acquired
by the Russian MTS company which is quite well-known in the mobile
telecommunication market.
As announced in yesterday’s press conference, the transaction
costs Ð~B 310 million, of which Ð~B 260 million will be paid to the
company’s owner immediately; as to the remaining 50 million, it will
be paid within the coming 3 years in case "K-Telecom" company meets
the established indices of income and profitableness. MTS will give
"K-Telecom" a loan in the amount of Ð~B 140 million with the purpose
of paying off the current debts and funding the investment programs.
The participants of the transaction have agreed upon the sale of the
remaining 20 per cent of the company’s shares.
According to the agreement, the owner of the remaining shares has
the right to sell them, and MTS has the right to acquire them. It was
agreed that the price will be determined based on the evaluation of
an international independent bank.
According to LEONID MALAMED, the Company’s Director, this achievement
is in full compliance with the MTS strategy, which is directed at
the using the potentials of the speedily growing markets of the
CIS countries.
"Armenia is becoming the sixth country where MTS operates. We are
happy that we have the opportunity to enter this attractive market
due to the cooperation with the leading operator."
L. Malamed believes that MTS Company’s experience will promote the
further development of the mobile telecommunication market. Although
MTS operates with its own brand, the new owner has no intention
to change the brand of "Viva Cell". The issue will be discussed
in future, and a decision will be made considering the factor of
appropriateness. Especially, in such conditions that "Viva Cell"
is a well-known name in Armenia.
With regard to the further tariff policy, MTS has no plans to make
changes in it, at least till the end of the current year.
"’Viva Cell’ has its own tariff plan, and we have no intention to
intervene in the process of its realization. We will have a minimum
participation here till the end of the year."
The new owner expressed willingness to maintain the company’s staff,
especially because it has managed to ensure quite positive results in
a short period of time. Within the period of its short-term activity
(1045 days) in the sphere of mobile communication, "Viva Cell"
has attracted 66 per cent of Armenia’s mobile communication market,
ensuring around 1 million subscribers.
Simultaneously, the company’s entrance into the market has seriously
contributed to the development of mobile telecommunication.
It greatly influenced the service prices, which sharply decreased as
a result of effective competition opportunities. On the other hand,
the mobile communication network acquired a more extensive coverage.
Taking advantage of "ArmenTel’s" failure, the company included
many regions of Armenia in the sphere of mobile communication,
ensuring conditions for the speedy increase of its subscribers. It
is not accidental that within a six-month period of its activity,
it attracted almost half of the market.
With "VivaCell’s" appearance, the situation in the market changed,
both in terms of developing competitive relations and extending the
communication network and increasing its quality. Today, the company’s
mobile communication services cover 98.5 per cent of the territory
of Armenia.
Touching upon the question whether the existence of two Russian
companies in the sphere of mobile communication network will not
have a negative impact on the market and whether it will not lead to
the implementation of their coordinated policy, the MTS Chairman
recommended the participant to follow their activity in other
countries. He finds that wherever the rules of economic competition
are available, no such problems emerge.
Having sold 80 per cent of "VivaCell’s" shares, the Lebanese
businessmen from the family of Fatoush are planning to continue
their investment activities in a different sphere. In particular,
there are plans both in the sphere of mine industry and construction,
according Pier Fatoush. The Fatoush family will in the near future
declare of its intention of implementing an extensive program. Within
the frameworks of that program, the investments will exceed the sum
of 1 billion US Dollars.
–Boundary_(ID_px/IKgHtYiZGV7apHbEctQ)–