Armenian regulator refuses Russian company to buy MTS Armenia

Armenia's Public Services Regulatory Commission (PSRC) has rejected an application for a deal within the MTS group for the purchase by Russia's Mobile Telesystems PJSC of 100% shares of MTS Armenia CJSC (Viva-MTS brand) from Cypriot offshore Aramayo Investments Limited.

"The transaction was denied," the CRTC told Interfax.

The decision on the agency's website says that Armenia's Ministry of High-Tech Industry opposed the approval of the deal on December 27, 2023, "based on state interests."

The application was submitted by MTS Armenia CJSC in August 2023. Commenting on the transaction, the press service of MTS Armenia stated that as a result of the transaction the chain of owners of the company would be reduced, which would ensure more efficient interaction and corporate governance between MTS Armenia CJSC and the parent company.

In November 2023, the PSRC approved another transaction involving the acquisition of 100% of MTS Armenia's shares by Fedilco Group Limited of Cyprus. After the conclusion of this transaction, MTS Armenia will leave the MTS Group.

MTS Armenia emphasized in mid-January that the CRTC's decision on the intra-group deal will not affect the deal with Fedilco in any way. The new deal is in force and nothing is threatening it.

The press service of MTS told Interfax earlier that the company is focusing on business development in Russia and could potentially “consider selling the asset in Armenia if there are buyers with a good valuation”.