MegaFon improves FY sales by 4.3%; puts the squeeze on minority shareholders

22 Mar 2019

Russian cellco MegaFon posted a revenue increase of 4.3% in full-year 2018 to RUB335.55 billion (USD5.22 billion), whilst annual net profit increased by 2.7% to RUB21.07 billion. Operating income before depreciation and amortisation (OIBDA) for the twelve-month period rose by 1.8% to RUB124.04 billion and yearly CAPEX investment was raised by 45.5% to RUB81.46 billion. MegaFon’s mobile subscribers decreased by 0.3% year-on-year to 76.9 million as of 31 December 2018.

MegaFon’s Mandatory Tender Offer (expired 7 March 2019) resulted in the company’s wholly owned subsidiary MegaFon Finance acquiring 126.25 million ordinary shares representing 20.36% of total outstanding shares of MegaFon and, as a result, the percentage of MegaFon shares held by MegaFon Finance (42.88%) together with its affiliate AF Telekom Holding (part of the USM group ultimately controlled by Russian business magnate Alisher Usmanov, 56.32%) reached 99.2%. Accordingly, pursuant to federal law, MegaFon Finance has the right to squeeze out the remaining (0.8%) minority shareholders.

Russia, MegaFon