MegaFon minority share buyout completed for RUB83.2bn; Gazprombank exits ownership

12 Mar 2019

Russian cellco MegaFon yesterday announced that its wholly owned subsidiary MegaFon Finance has concluded a Mandatory Tender Offer, purchasing 20.36% of MegaFon’s share capital (out of a maximum 21.16% targeted via the tender) between 28 December 2018 and 7 March 2019 for a total price of RUB83.23 billion (USD1.26 billion). TeleGeography notes that the buyout included Gazprombank’s entire 18.96% stake plus 1.4% from other minority shareholders, leaving just 0.8% in free float. USM Holdings (a non-public entity controlled by Alisher Usmanov) owns 56.32% of MegaFon whilst 42.88% is now attributed to MegaFon Finance/MegaFon Investments (wholly owned by MegaFon itself).

On the same day (11 March 2019) MegaFon announced the successful placement of RUB10 billion in bonds, in two issues at nominal value of RUB5 billion each.

Russia, MegaFon