“MegaFon” and “VimpelCom” agreed to divide “Euroset”

“MegaFon” and “VimpelCom” agreed to divide “Euroset”

MOSCOW, July 12. /TASS/. Operators “MegaFon” and “VimpelCom”, which owns 50% of retailer Euroset, has agreed on its division, said in a statement. Representatives of the operators explained TASS that the parties have already signed full, legally binding document in respect of the transaction.

Under the terms of the agreement, MegaFon will acquire the “VimpelCom” 50% of retailer Euroset, consolidating 100% of the company. Thus “Vympelcom” the transaction will receive half of the salons “Euroset” (from about 4 thousand salons of the retailer). Now “Vympelcom” about 1.5 thousand own salons.

Financial terms of the deal were not disclosed. In the reports of the operators stated that the transaction will be completed only after observing all prerequisites and obtain the approval of regulators.

Application to the FAS

“MegaFon” and “Vympelcom” plans to address in Federal Antimonopoly service (FAS) statements about the deal on the separation of “Euroset”.

“In the near future we plan to apply to the Federal Antimonopoly service”, – have informed in “the Megaphone”. “Obtaining consent of the FAS is one of the conditions of the transaction, but does not mean that it will be closed”, – said the press service of the company.

In a press-service of “VimpelCom” said that statements of “MegaFon” and “VimpelCom” in the face of this transaction will be separate.

The Fate Of “Euroset”

“Euroset”, as noted in the message of “MegaFon” will continue to operate in the market as an operating company and will continue to grow as the retail network.

President “Euroset” Alexander Malis, whose words are reported by the retailer, also said that “the Euronetwork” will continue to develop as an independent company in the market of mobile electronics and portable equipment, as well as financial services and additional services. “The Euronetwork” will continue cooperation with its partners in fulfilling its obligations”, – he said.

At the same time, “VimpelCom” explained TASS that the transaction has not closed, and to discuss the future of the brand “Euroset” is premature. In a press-service of the operator added that at the moment, “can’t make any additional comments on cost.”

Malis said that VimpelCom was a shareholder of “Euroset” for nearly nine years, and MegaFon – the shareholder of the company for five years. “This was a very interesting collaboration. Recently, however, shareholders had seen our future. Now the situation is resolved, and open for us new opportunities for development,” he said.

According to Malis, the transfer of part of the premises of “Euroset” to “VimpelCom”, “will be continuous and uniform, so it doesn’t cause problems for the company.” “We will not reduce staff – on the contrary, we will open new shops and hire people,” he added.

According to the CEO of MegaFon Sergey Soldatenkov, the agreement will allow the parties “to exercise their independent retail strategy and optimize the distribution network in Russia”.

“The transaction with “the Megaphone” enhances the single-brand strategy “Vympelcom” and will double our retail network in Russia”, – noted in turn, the General Director of “VimpelCom” Kjell Johnsen.

The Story Of “Euroset”

“Euroset” until 2008, belonged to its founder Yevgeny Chichvarkin. In the fall of 2008, he sold it to Alexander Mamut, who in turn, sold 49.9% of the company to VimpelCom for $226 million In December 2012, Mamut sold a controlling stake for $1.07 billion – 25% of the shares received MegaFon and Garsdale holding, 0,1% bought VimpelCom. In the summer of 2014 the share of Garsdale moved “to the Megaphone” now operators own the “Euroset” on a parity basis – 50% of the shares.

In March this year, the head of “MegaFon” Soldatenkov said that negotiations about the division of “Euroset”. Then the newspaper Vedomosti reported that MegaFon will buy a package of “Euroset”. According to sources, MegaFon will increase its stake in the company to 100%, and “Vympelcom” will receive 2 thousand salons, but will pay the partner a little more than 1 billion roubles in debt.

The “Euroset”, according to the newspaper “Kommersant”, will be combined with “Connected”. The combined company in the first phase may get under management of about 5 thousand of stores: approximately 2.7 thousand shops “Coherent” and more than 2 thousand – “Euroset”, and in the future the number of stores will increase to 6 thousand