10 years ago today, on September 14, 2007 Russian company MTS purchased 80% of shares of Armenian mobile operator VivaCell.
MTS President Leonid Melamed, VivaCell General Manager Ralph Yirikian and President of Lebanese investment company Fattouche Group Pier Fattouche announced the news on September 14, 2007 in Yerevan.
MTS bought 80% of the authorized capital stock of International Cell Holding Ltd, indirect owner of K-Telecom CJSC that operates under VivaCell brand, and signed an option agreement for purchase of the remaining 20% of the shares.
The sum of transaction made EUR 310m, including EUR 50m that was to be paid to the owner within 3 years - from 2008 to 2010 - provided that agreed income targets were met by K-Telecom.
MTS also provided K-Telecom a loan of EUR 140m for debt repayment and investment program.
Leonid Melamed stated that “the purchase is fully compliant with the strategy of MTS, which aims to use the potential of rapidly growing CIS markets”.