MegaFon completed the redemption of own actions from minority shareholders
The All-Russian operator of digital opportunities MegaFon announced on June 7, 2019 completion of the procedure of the redemption of Megafon Finance LLC (100 percent subsidiary of Megafon) of stocks of the operator according to the requirement about the redemption which came to Megafon on April 17, 2019. As a result of the redemption "Megafon Finance" acquired 4,966,749 ordinary shares of the company (about 0.8% of a total quantity) at the price of 659.26 rubles for one security. Thus, the total cost of a packet of the acquired shares was 3.27 billion rubles. Read more here.
The agreement with Fort Ross Ventures on exchange of technologies in the field of innovations
On June 10, 2019 MegaFon and Fort Ross Ventures management company entering an ecosystem of Sberbank signed the agreement on strategic partnership and cooperation in innovations, exchange of technologies and joint search of attractive objects for investments.
Within the signed agreement Fort Ross Ventures will represent to Megafon own examination and information on perspective potential investments and home portfolio companies. MegaFon, in turn, intends to consider the possibility of cooperation and investment into funds which general partner is Fort Ross Ventures.
MegaFon will stretch a fiber optic cable from Helsinki in Tokyo
On June 6, 2019 MegaFon announced construction of an underwater high-speed optical line between Tokyo and Helsinki. For project implementation the Russian telecommunication company signed with the Finnish infrastructure operator Cinia Group the agreement on creation of the international consortium which, in addition to MegaFon, included "the Japanese and Scandinavian companies and also international financial institutions". The agreement was signed at the St. Petersburg International Economic Forum (SPIEF).
As reported in the press release of MegaFon which came to edition TAdviser it is about laying of the first transarctic fiber optic cable. It will pass on a bottom of the Arctic Ocean and will have the extent of 10 thousand km.
The role of MegaFon in this project consists in the help with obtaining allowing documentation in Russia. The operator will get also access to the communication line. According to the CEO of the company Gevork Vermishyan, construction of an underwater high-speed optical line between Tokyo and Helsinki will cost approximately in the amount from $800 million to $1.2 billion. It will be possible to speak about exact expenses after carrying out researches, he noted.
By June, 2019 more than 95% of world volume of data transmission fall to the share of the international underwater cable networks. The expected growth of transit of the international IP traffic between the Asian and European continent in the next five years will exceed 200% thanks to coherence of data centers worldwide, data transmission in networks of the next generations, development of Internet of Things and digitalization of the industrial Internet, predict in MegaFon.
Credit line for 15 billion rubles from Otkrytiye Bank
It is supposed that means will go for financing of operating and investment activities.
| ||The bank is very interested in development of partnership with the company of the market of telecommunications. We see the considerable potential of development of cooperation with PJSC MegaFon in all business lines."|
Ekaterina Chirkova, the Head of Department on work with corporate clients of bank "Opening
Earlier credit institution acted as one of organizers of placement of three-year bonds of MegaFon of 20 billion rubles.
MegaFon decided to build data centers independently
| ||We attentively studied the market of data centers regarding the existing offers — TASS the official representative of MegaFon reported. — The decision to independently build data centers is as a result made, using the most modern solutions.|| |
In the company noted that this solution is caused by problems when the existing data centers or represent services of last round of development of technologies, or set unreasonably high prices of these services.
MegaFon did not begin to disclose the volume of the planned investments into construction of own data centers.
By March, 2019 MegaFon has the network of data centers numbering 18 objects. They are located in such cities as Moscow, St. Petersburg, Kazan, Samara, Orenburg, Novosibirsk, Stavropol, Murmansk, Krasnodar, Yekaterinburg, Tomsk, Khabarovsk.
All data centers are constructed according to requirements of international standard TIA-942 and located in buildings which are owned or the companies, or in long-term lease.
MegaFon notes that data centers and network infrastructure are designed taking into account requirements for ensuring business continuity of clients and correspond to the level of reliability of Tier 2 / + ( according to Uptime Institute classification). At the same time the Samara data center has the international certificate on compliance to requirements of category Tier-3.
In 2018 a capital expenditure MegaFon, including on expansion of network of DPCs, increased by 45.5% concerning the 2017th and reached 81.46 billion rubles. A part of costs fell on equipment procurement, necessary for compliance with law of Yarovaya.
Gazprombank stopped being the co-owner of Megafon
Since March 5 Gazprombank ceased to own the share in Megafon company which is estimated at 77.5 billion rubles. Gazprombank owning 18.96% of stocks of Megafon left the capital of operator, follows from the message of credit institution on the portal of disclosure of corporate information.
Follows from it that the right of Gazprombank to dispose of this share block is stopped on March 5. The basis specifies "the termination of participation in the organization".
"Quantity and a percentage share of voices<…> which has the right to dispose the issuer after approach of the corresponding basis: 0 voices and 0.00%" — it is told in the message. Thus, the credit institution completely left the capital of Megafon.
Beginning of work of JV Rostelecom and MegaFon
The Russian provider of digital services and solutions of PJSC Rostelecom announced on February 28, 2019 TAdviser the beginning of joint activity with PJSC MegaFon on development of mobile communication of fifth generation (5G) on the basis of joint venture Novye tsifrovye resheniya (ranee Digital dlya businessa) LLC. As specified in Rostelecom, participants of partnership will own the joint venture in equal shares. And the board member of Rostelecom Vadim Semyonov will head the company. Read more here.
The amount of the placed bonds was 20 billion rubles
On January 28, 2019 Megafon reported that the amount of the placed bonds was 20 billion rubles. The nominal value of one paper — 1000 rubles, the placement price — 100% of face value. Circulation period — 3 years, offers are not provided. Based on a bukbilding the rate of the coupon was recorded at the level of 8.55% per annum. Payment of the coupon will be performed on a semi-annual basis.
Bonds are placed within the Exchange-traded bonds program. The money received from placement will be directed to financing of the all-corporate purposes of the Company.
GPB Bank (autonomous area), Otkritie bank, the Moscow Credit Bank, Raiffeisenbank, Sberbank CIB acted as organizers of release. The placement agent — GPB Bank (autonomous area). It is expected that technical placement of papers will be carried out on February 4, 2019.
MegaFon sold a half of Kometrika to Forpost holding
In the middle of January, 2018 the Russian operator of mobile and fixed connection MegaFon sold a 50 percent share in Kometrika company to Forpost holding of Anton Cherepennikov. The financial component of the agreement does not reveal. Read more here.
Joint work with "GIT"
On January 15, 2019 it became known that Diversified holding in the field of housing and public utilities "City Innovative Technologies" ("CIT"), the All-Russian operator of digital opportunities MegaFon and its subsidiary companies Kometrika and Netbynet agreed jointly to work on technology projects in the field of housing and public utilities at the federal level. The agreement was signed by the founder of "GIT" Grant Agasyan, the board member of MegaFon Anna Serebryanikova, the CEO of NETBYNET Andrey Batanov and the CEO of Kometrik Dmitry Petrov.
The joint investments in the most important technology projects of the country, acquisition telecommunication and housing and public utilities assets, use of modern technologies in the field of housing services, quality improvement of service in a housing and utilities sector in Russia, formation of new standards will become the main directions of cooperation. In addition, the companies agreed about joint work over the implementing solution "Digital Management Company", carrying out joint surveys and implementation of pilot projects in the field of process automation of management of the residential real estate.
| ||We are glad that we had a strategic partner who has the same serious plans for development of a housing and utilities sector, as well as we, and has necessary technology competences. We are sure that we jointly will be able to change the market of housing and public utilities, having achieved that the Russian housing will become one of the most modern and technological in the world. In our plans joint arrival to different regions of the Russian Federation, the joint investments and active work. Are sure that in 2019 our cooperation will bring specific results and will cover tens of millions of meters of housing stock through the whole country.|
Grant Agasyan, founder of PJSC GIT
| ||Housing and communal services are that sphere which especially needs digital conversions. We conduct active work in this direction. For example, in the Novgorod region the solution "Digital Management Company" already works in the pilot mode. Together with our partners we will be able to implement solutions which will simplify interaction of residents with municipal services through the whole country. That it became a reality, we apply our own developments and we use examination of our partners regarding Big Data and Internet of Things].|
Anna Serebryanikova, board member of MegaFon
The obligatory offer from "Megafon Finance" about acquisition of issued securities
On December 27, 2018 MegaFon announced that after the prior notice of the Bank of Russia, the obligatory offer of Megafon Finance LLC on acquisition of issued securities (ordinary nominal uncertificated shares) of MegaFon in number of 131,212,843 pieces came to Society. Read more here.
Gevork Vermishyan's appointment to a post of the CEO of MegaFon
On November 13, 2018, within the extraordinary meeting of shareholders of MegaFon, Gevork Vermishyan's appointment to a post of the CEO of the company was approved. As result, with it the contract for a period of three years was signed. Read more here.
Organization of Association of participants of the market of Big Data
On October 16, 2018 MegaFon, Mail.Ru Group, oneFactor, Tinkoff Bank, "Yandex" and Sberbank founded Association of participants of the market of Big Data. Anna Serebryanikova, an operational direktor of MegaFon is elected the president of the organization. The board of association was joined by representatives of all founder companies. A main objective of the organization — creation of conditions for development of technologies and products in the field of Big Data in Russia. Read more here.
Receiving a tranche for 21 billion rubles from Alfa-Bank on financing of actions
On August 15, 2018 the MegaFon company, the national Russian operator of digital opportunities, announced receiving on August 14, 2018 a tranche for the amount of 21 billion rubles within the existing credit agreement for the total amount of 25 billion rubles with Alfa-Bank.
The credit under a fixed interest rate is obtained for three years. The company is going to allocate funds for financing of the issued and placed ordinary shares and the GDR of the company performed by Megafon Investments (Cyprus) Limited, 100% subsidiary of the company on the conditions specified in the program which, in turn, was announced on July 16, 2018.
Decision on leaving from the London exchange
The MegaFon company, the All-Russian operator of digital opportunities, announced on July 16, 2018 that the Board of Directors of the operator at the meeting which took place on July 15 defined that preserving of the status of the public company is not a priority strategic task of the company, and made the decision to approve the program of acquisition of ordinary shares and the global depositary receipts (GDR) and also cancellation of listing of the GDR on the London Stock Exchange (LSE).
The program of acquisition of ordinary shares and the GDR will be performed by Megafon Investments (Cyprus) Limited company (MICL company), absolute subsidiary of the company, in the form of acquisition with payment in money to 128,950,036 issued and placed ordinary shares and the GDR making 20.8% of all issued and placed shares of the company. Purchase price for securities concerning which applications were submitted will be $9.75 for each ordinary share and for each GDR. Action of the program of acquisition begins on July 16, 2018, end is planned for August 22. The offer of MICL within the program of acquisition will be made to all common shareholders and the GDR, except USM Holdings and Group of Gazprombank and also MICL company.
The company is going to cancel listing of the GDR on LFB after acquisition program termination. MegaFon can also consider a question of preserving or the termination of the program of the GDR after cancellation of listing taking into account, in addition, quantity of the GDR, remained in circulation after acquisition program implementation. At the same time there are no guarantees that the program of the GDR will be saved. In connection with complexity and possible high costs for delisting of ordinary shares at the Moscow Exchange the Board of Directors did not make the decision on similar delisting yet. MegaFon will consider a question of possible delisting of ordinary shares at Moscow Exchange after acquisition program termination.
The program of acquisition announced by MegaFon gives to owners of securities an exit opportunity with an award to the current market prices before delisting of the GDR, the possible termination of the program of the GDR, possible lowering of the level of listing of ordinary shares from the current First level to the Third level at the Moscow Exchange and possible delisting of ordinary shares in the future.
| ||The offer on delisting is dictated by large-scale strategic changes which we need to perform to complete transformation of MegaFon from the telecommunication operator in the leader of the digital market of Russia. In the course of the strategy of transformation which we announced in May, 2017 it becomes clear that the ambitious scale and the nature of further steps which can be required for achievement of this purpose can create a significant additional risk for our minority shareholders. The carried-out changes can negatively affect our indicator of OIBDA, growth rates of revenue and level of debt in the medium term and to demand additional resources for implementation of our strategy and review of the previous policy of dividend payout. In view of these factors and the remaining unstable situation in the stock markets, Council, considering the current situation, came to a conclusion that will be correct to offer our minority shareholders an exit opportunity with an award to the current market value of our actions and GDR — the chief executive of MegaFon Gevork Vermishyan noted.|| |
Anton Pirogov is the director of Capital branch
On June 21, 2018 the MegaFon company announced position assignment of the operating officer of Capital branch Anton Pirogov. It released Aleksey Semyonov who made the decision to leave the company from this duty. Read more here.
Formation of JV MF technologii
The MegaFon company announced on May 8, 2018 creation of joint venture JSC MF technologii (MFT) with Gazprombank, Rostec and USM Holdings for digital service development and projects implementation in the field of digital economy. Under the terms of the transaction, MegaFon will enter to joint company 11,500,100 of the stocks Mail.ru Group of class A owned by it (that makes 5.23% of economic and 58.87% of the voting share in Internet holding). Read more here.
Subscribers of mobile communication
Purchase of 12.5% of a share in authorized capital of Outpost
The MegaFon company announced on December 27, 2017 closing of the transaction on acquisition of 12.5% of a share in authorized capital of Forpost LLC at the only participant of the company — the CEO of IT holding Anton Cherepennikov. Transaction amount was $3.125 million and was paid in rubles on December 26, 2017. Read more here.
MegaFon and Rostelecom will develop jointly 5G networks
Telecommunication companies "MegaFon" and "Rostelecom" in November, 2017 signed the agreement on cooperation in the field of development of networks of standard 5G. By calculation of the companies, it will allow to reduce construction costs of such networks. Within cooperation MegaFon and Rostelecom intend to develop optimal scenarios of implementation of networks of fifth generation on the basis of the international experience taking into account features of the Russian mobile communications market. In more detail here.
About sale of Telia Company of stocks of MegaFon
The Telia company agreed to sell 19% of shares of MegaFon belonging to it to Gazprombank. As stated in the statement, this transaction corresponds to the strategy directed to concentration of business in countries of Northern Europe and the Baltic.
Earlier the company already sold 6.2% in MegaFon for about 22.5 billion rubles. The amount of the new transaction with Gazprombank was 60.4 billion rubles, or 514 rubles for an action.
On October 31, 2017 PJSC MegaFon comments on the press release of Telia Company in which it is announced consent to sell 19% of stocks of the operator to Gazprombank. The company management expresses deep gratitude to Telia Company standing at the origins of creation of MegaFon for long-term effective cooperation and a huge contribution to development of MegaFon.
MegaFon and Veon separated Euroset
On July 12, 2017 PJSC MegaFon and Veon announced the termination of joint activity within business of Euroset. On the basis of the agreement reached between the parties, MegaFon will purchase at VimpelCom the share belonging to the company in the amount of 50% of stocks of Euroset and will bring the share of ownership to 100%. At the same time Euroset will remain in the market as operating company. PJSC VimpelCom, in turn, will purchase a half of retail salons of Euroset.
Crucial elements of new strategy
MegaFon set a goal — to evolve and adapt to the new digital world. One of the directions of development are "Big Data" thanks to which the company hopes to understand better wishes of each specific client to offer it necessary services.
| ||We aggregate open information on values, requirements and a customer behavior from different sources. Analyzing these data, we create the best products for the new and existing clients, says the company.|| |
Also MegaFon intends to pay attention to projects in the field of information and communication technologies and Internet of Things, in particular. Within development of an ecosystem of partnership the operator will propose to corporate clients complete industry solutions, including service of the fiscal data operator, a monitoring system of transport and industrial facilities, "smart" counters for housing and public utilities, etc.
MegaFon is going to develop integration services in the field of communication for the state and business, providing them paketno.
| ||For example, when the customer addresses us concerning partnership, we do not discuss either minutes, or megabytes because clients order turnkey services. It includes a monitoring system, dash-borda and other reports. The similar project — one of examples of participation in the Digital Economy program — the representative of MegaFon explained RBC.|| |
The company is going to place emphasis on so-called digital clients as whom the operator understands the subscribers who are monthly consuming a large number of mobile Internet traffic, using mobile applications, communicating in messengers and also using phone for payment of goods. By May, 2017 such clients make a third of a subscriber base of MegaFon.
The largest failure in the history
On May 19, 2017 MegaFon endured the largest failure in the history  (in more detail) as a result of which for all day without communication there were left subscribers across all Russia and beyond its limits.
Purchase of a controlling stake of Mail.ru Group
On December 23, 2016 MegaFon announced the decision of Board of Directors to call shareholder meeting for approval of purchase of 11.5 million class A shares and 21.9 million ordinary shares in the capital of Mail.Ru Group Limited belonging now to the companies of the USM group and representing about 63.8% a share of voting shares of Mail.Ru Group.
Under the terms of the agreement, MegaFon will acquire 11.5 million class A shares and 21.9 million ordinary shares in the capital of Mail.Ru Group representing about 63.8% of voting shares of Mail.Ru Group at New Media and Technology Investment LP, New Media Technologies Capital Partners Limited and Ardoe Finance Limited entering into the USM group for the approved monetary reward in the amount of 640 million US dollars which are subject to payment at the time of closing of the transaction and also payment of deferred payment in the amount of 100 million US dollars in a year after closing of the transaction. In more detail - you look in article Mail.Ru Group.
Partnership with Mail.ru
On November 16, 2016 the company MegaFon company confirmed the fact of negotiations with Mail.ru Group Limited on possible cooperation in joint product development and services for mobile subscribers and Internet users in the markets of presence of the companies.
According to the published statement, the companies are seen in technologies and trends of an opportunity for more active cooperation between telecom operators and the Internet companies created in the market. Mail.Ru Group and MegaFon consider themselves natural to partners for such partnership and discuss the different commercial projects directed to achievement of strategic and economic targets of both companies.
Confirming the general intentions and the conducted negotiations with shareholders of Mail.Ru Group, let know MegaFon in the statement - for November 16, 2016 there is no clarity in whether MegaFon a shareholder of Mail.ru company will be. The agreement, will be reached like that or not, irrespective of acquisition of a share block of Mail.Ru Group, will not have impacts on style of relationship and work of the companies - partners will continue to act as the independent companies in market conditions. Commands of management of the companies will adhere to the put corporate culture and corporate management, providing development, product development and cooperation in strategically and economically mutually advantageous projects.
Sergey Soldatenkov is the CEO of MegaFon again
On April 27, 2016 MegaFon announced Sergey Soldatenkov's appointment to a post of the CEO of the company. It will replace Ivan Tavrin who decided to resign "to focus on development of the current and new business projects and also work in Boards of Directors of USM Holdings which shareholder he is, and the companies entering it", says the operator.
MegaFon concluded with security agencies government contracts for the amount more than 500 million rubles
On March 18, 2015 announced MegaFon a victory in tenders for provision of services of mobile and fixed connection to the departments connected with the state protection and defense. Total amount of contracts is more than 500 million rubles.
"The division on work with federal state clients of MegaFon is highly qualified also long-term experience with security agencies of the Russian Federation, - Sergey Bulangcha, the director of work with the state clients of MegaFon company noted. - We proved as the reliable partner in the market of communication services in Russia in public sector and we pay much attention to expansion of the offer, including at the expense of reliable channels of the confidential communication so necessary in work of law enforcement agencies".
In 2012 MegaFon is entered in the Federal register of fair suppliers prepared by experts of the International center of investment consulting. This fact is confirmed by compliance of mobile services of the operator to international quality standards.
Purchase of Gars Telecom
On September 18, 2015 it was announced closing of the transaction on merger of Gars Telecom B2B-operator by MegaFon company. Financial side of the agreement does not reveal.
According to Interfax with reference to the statement of MegaFon, the company purchased 100% of the Cyprian Gars Holding owning Gars Telecom which includes Gars Telecom — Management of Telekommunkation LLC, Voyp Corporation LLC, Garstelekom Retail LLC and Gars Telecom Northwest LLC.
At the expense of the announced acquisition MegaFon intends to strengthen positions in a segment of fixed connection in the Moscow business centers and to increase the share in the market of services of corporate communication. Gars Telecom works with such large customers as Alfa-Bank, B&N Bank, the Russian Railway, Epson, ExonMobile, Panasonic, etc., reported on the official site of the operator.
Gars Telecom cooperates with MegaFon since 2003, renting at it infrastructure for work on model of the virtual operator (MVNO, Mobile Virtual Network Operator). The similar agreement of Gars Telecom has with VimpelCom.
In addition to traditional telecommunication services, Gars Telecom is engaged in telecom consulting, outsourcing of communication services and telecom infrastructures and also management of the telecom budget.
The credit of $600 million in the Chinese bank
On December 4, 2015 MegaFon announced signing of two credit agreements with Development bank of China (China Development Bank, CDB) for the total amount of $600 million.
Within optimization of a debt portfolio MegaFon will obtain from CDB the credit of $300 million with repayment in 2021 which will be directed to refinancing of a current debt of the operator. The second loan agreement for a period of eight years (2015-2023) will allow MegaFon to buy telecommunication equipment of Huawei for $300 million for construction of 4G networks and 3G and also for upgrade of the existing infrastructure. Interest rates for these credits do not reveal.
"The company considers agreement signature for the purposes of refinancing an important step in development of the relations with CDB as for the first time this financial institution provides to the company money not only for financing of purchase of the equipment. It significantly expands access of MegaFon to sources of refinancing of a debt", says the operator.
The companies announced that CDB will open to MegaFon a credit line for $600 million at the beginning September, 2015. The framework agreement between them was signed during the visit of the president of that time Russia Vladimir Putin to China.
Cooperation of CDB and MegaFon began in 2005. By the beginning of December, 2015 the total amount of agreements between the companies exceeded $ 2.4 billion, and more than $500 million for equipment procurement of Huawei are available to the operator on two credit lines, Kommersant notes.
The contract with Ericsson for supply of equipment and software for 7 years
In August, 2014 MegaFon and the Swedish company Ericsson announced the conclusion of the strategic agreement on development and upgrade of telecommunication infrastructure for a period of seven years.
Within the agreement Ericsson will have an opportunity to perform supply of equipment and the software of a radio network 2G/3G/4G and reference network for the purpose of development and upgrade of network of MegaFon, including possible replacement of the equipment of other suppliers in any region of Russia.
At the first stage collaboration in hardware upgrade of reference network in Northwest branch of MegaFon is planned.
In the conditions of severe competition in the telecommunication market service quality of subscribers becomes a key factor for preserving of technological leadership. The agreement between Ericsson and MegaFon assumes delivery of a complete line of solutions and services which will allow the operator to implement new products in the shortest possible time and to provide the highest level of service due to increase in capacity and a covering of network, noted in the press service.
"Thanks to this contract we open a new stage in cooperation of two companies. The choice of such reliable partner as Ericsson will allow us to propose to subscribers the most modern technological solutions. I express gratitude to the management and all command of Ericsson for the done work and readiness to meet requirements of the partner" — Evgeny Chermashentsev commented, the director of infrastructure of MegaFon.
"The agreement with MegaFon company brings our cooperation to essentially new level. Our portfolio and global knowledge of the market allow us to be sure that we will be able to solve problems of any complexity and scale in the shortest possible time and with maximum efficiency. Also as well as MegaFon, Ericsson attaches great value to increase in availability of high-quality mobile services and intends to support the operator in implementation of plans for development of telecommunication infrastructure", – Charlotta Sund, the head of Ericsson in the region Northern Europe and Central Asia noted.
The controlling stake of OJSC MegaFon is transferred from offshores to ownership Russian to AF Telecom Holding LLC
USM Holdings Ltd of Alisher Usmanov transferred a controlling stake of OJSC MegaFon from offshores to ownership of the Russian holding company - AF Telecom Holding LLC.
"USM Holdings Ltd announces completion of process of reorganization of holding structure for the purpose of transfer of controlling stakes of the strategic enterprises to the Russian holding companies", - follows from the message of USM. In addition to stocks of MegaFon Usmanov transferred from offshores a controlling stake of Metalloinvest to ownership of the Russian YUESEM Metalloinvest LLC. "Both enterprises which controlling stakes thus will pass into the Russian jurisdiction have a strategic importance for the Russian economy", - it is emphasized in the message of USM.
The company explained that reorganization happened in connection with the course towards deoffshorization of the Russian economy announced by the Russian President Vladimir Putin. Besides, one more reason for that – introduction to the Tax Code of the provisions concerning taxation of profit of the controlled foreign companies. Let's remind, on December 5 Vladimir Putin charged to the government to prepare the law on "offshore amnesty" till July 15, 2015. He spoke about its value on December 4 in the message to Federal Assembly where he suggested "turn the offshore page in the history of the country".
Ivan Tavrin transferred USM 2.5% of stocks of MegaFon company
The CEO Megafon Ivan Tavrin transferred USM 2.5% of the stocks of MegaFon company which are earlier purchased at the price of public placement, equal $20 for an action as partial compensation for the share in USM purchased by it. Conditions of the perfect transaction also provide transfer of the option for acquisition of additional 2.5% in authorized capital of the Company which was received um by Tavrin within the program of long-term motivation of the CEO approved by Board of Directors of the Company on November 30, 2012.
As a result, the share of USM in authorized capital of the Company increased from 53.82% to 56.32%. This transaction, also as well as the previous redemption of stocks of USM at Alisher Usmanov what the Company announced earlier, is directed to motivation and deduction of top management of USM and corresponds to the statements made during public placement of stocks of MegaFon.
2013: The dearest mobile operator of Russia on capitalization
On May 15, 2013 market capitalization of MegaFon for the first time in the history exceeded indicators of the Russian mobile operators and made more than 20 billion dollars (according to the Bloomberg agency).
For the beginning of 2012 were a part of top management of the company:
- Soldatenkov Sergey Vladimirovich is a CEO
- Dubin Mikhail Andreevich is the First Deputy CEO on strategic development
- Ermakov Valery Viktorovich is the First Deputy CEO on operating activities
- Vermishyan Gevork Arutyunovich is a Deputy General Manager for Finance
- Ostrovsky Eduard Georgiyevich is the Deputy CEO for implementation of special programs and interaction with state bodies
- Pogosyan Tigran Karlenovich is the deputy CEO for strategic projects
- Solodukhin Konstantin Yuryevich is the deputy CEO for development of federal corporate sales and operator business
- Tkachuk Larisa Sergeyevna is the deputy CEO for commerce
- Goryainova Anna Andreevna is the director of legal issues, the corporate secretary
- Zheymo Yury Antonovich is the director of internal audit
- Kononov Dmitry Leonovich is a director of business development in the field of merges and absorption
- Lidov Pyotr Alekseyevich is a director of public relations
- Likhova Irina Borisovna is the director of personnel management
- The Narva Olga Andreevna is the director of strategy
- Nikolayenko Oleg Veniaminovich is the director of cross-industry projects
- Nochevnov Denis Vladimirovich is the director of new technologies and services
- Parfyonov Igor Borisovich is the technical director
- Strelkina Lyubov Nikolaevna is the chief accountant
- Hrenov Sergey Nikolaevich is the head of the department of guaranteeing income and management of a fraud
- Yunov Konstantin Vladlenovich is a CIO
Change of the CEO: Soldatenkov is replaced by Tavrin
On April 20, 2012 it became known that the extraordinary meeting of shareholders of MegaFon made the decision on early termination since April 20, 2012 of the contract with the CEO of the company Sergey Soldatenkov. The deputy director general Ivan Tavrin became the new head of the company. At the same time the Board of Directors of MegaFon recommended Soldatenkov's candidacy for entry into council.
Soldatenkov's contract expired in the summer. Earlier he said that he does not intend to prolong it. Many market participants assume that the head of MegaFon will pass into the Ministry of Communications after formation in May of the new structure of the government. Soldatenkov assured that he is not going to work at civil service, however his early leaving can serve as another proof of such rumors.
Replacement of the leadership of MegaFon matched emergence of information on possible sale of Alfa Group of the share in the operator. The fact that Usmanov's partner became the new CEO of MegaFon can be considered as one more confirmations of leaving of Alpha.
Shareholders of MegaFon created new structure of ownership
Structure of property of the company for the beginning of 2012:
- Telia Company (before TeliaSonera) Sonera - 43.8%, including 35.6% directly and 8.2% through Telekominvest.
- AF Telecom Holding - 31.1%, including 8% directly and 23.1% through Telekominvest.
- Altimo - 25.1%.
On April 24, 2012 Alisher Usmanov redeemed from TeliaSonera its packet in Telekominvest and together with it received 8.2% of shares of MegaFon. Besides, AF Telecom Holding of the businessman purchased 10.7% at Altimo (Alfa Group holding). As a result Usmanov became the owner of 50% plus the 1st stock of MegaFon from which 31.3% control through Telekominvest, and 18.7% - through AF Telecom Holding.
In May, 2012 JSC Telekominvest which was earlier owning 31.3% aktsty OJSC MegaFon for the benefit of Alisher Usmanov and TeliaSonera became known, left a shareholding structure of the operator, follows from the list of affiliates of MegaFon as of April 26, 2012.
At the same time, in the list there was an offshore Telecominvest Holdings Ltd registered in Cyprus which, according to materials of MegaFon, possesses 48.5% of the operator. To what company Alisher Usmanov transferred another 1.5%, it is not specified.
After the transaction with Usmanov selling 8.2% of MegaFon (within Telekominvest) TeliaSonera had in immediate possession share in 35.6%. In the list of affiliates of the operator it is specified that structure of the Scandinavian company - the Dutch Sonera Holding B.V. - for April 26 received 34.1% of shares of MegaFon (before change owned 26%). On what balance of the company there are another 1.5% which are due to TeliaSonera also it is not specified.
In the list of affiliates the Megafon Investments Ltd subsidiary company appeared. from equity interests of MegaFon in 14.4%. This packet of Megafon Investments redeemed from Altimo on April 24, at the same time with Usmanov's transaction on purchase of shares of mobile operator from Altimo and TeliaSonera.
As a result of these transactions of Altimo in April, 2012 completely left the capital of MegaFon that is reflected by changes in affiliates of the operator.
Alisher Usmanov who became after all transactions the controlling shareholder of MegaFon said that simplification of structure of ownership will contribute to the development of the operator. One of tasks facing MegaFon on the near future, - an exit to the IPO, the businessman said. Analysts noted that straightening of structure of ownership will promote increase in investment attractiveness of MegaFon.
MegaFon prepares the IPO at the London exchange. The total volume of placement will be about 20% of authorized capital of operator. TeliaSonera is ready to sell during placement 10.6% of shares of MegaFon with a condition of preserving of a share in 25% plus the 1st action, another 9.4% of stocks to investors will be offered by "subsidiary" of MegaFon of Megafon Investments. The rest of actions on balance of Megafon Investments can be extinguished. The question of reduction of authorized capital by repayment of papers is submitted for consideration of shareholders on June 4, 2012.
IPO: share placing at the London exchange
On November 28, 2012 MegaFon (at this moment the second in value mobile operator of Russia) placed shares on the lower bound of a certain earlier price range of the IPO — for $20 for the GDR, thus, the volume of attraction will be $1.7 billion, the company on Wednesday officially reported. Conditional biddings by papers of the company begin in London today and also in Russia. When listing capitalization of MegaFon will make $11.1 billion. Means from placement will receive TeliaSonera (its packet will decrease to 25.1%) and "subsidiary" of MegaFon. Alisher Usmanov does not lose control after the IPO. Free float of MegaFon will make 15.2%.
Trading in shares of MegaFon on the London Stock Exchange (LSE) began on November 28, 2012 at the level of $19.75 for paper, for 1.25% of low price of placement. During trading the price continued to fall, having reached $19.45 (minus 2.75% to the placement price), but then this falling was partially won back: the closing price was $19.6 (minus 2%). Other operators of "the big three" whose receipts are trading in America this day became cheaper too: MTS — for 2.09%, Vimpelcom — for 1.19% (at 9:30 p.m. Moscow time).
The trading volume papers of MegaFon on LSE was $785.5 million — about 47% of placement volume, at the Moscow Exchange — less than 4 million rubles. Demand was active, actions dispersed on a wide range of investors, the representative of operator Elena Alexandrova says. Most actively large global funds behaved, Gergey Vorosh, the co-director of Morgan Stanley Russia executing a role of the global coordinator and bookrunner of placement claims. According to him, about 30% of demand were provided by investors from the USA. There were investors from America and Europe not only focused to Russia, but also diversified funds of developing countries, the managing director of large European fund tells. According to his colleague, great interest to placement was shown by the Swedish funds.
Buyers of MegaFon explain the solution with the fact that wait for good dividend yield and consider the operator the leader of the Russian market, the managing director of UK "Uralsib" Igor Mikhaylov says; he purchased papers of MegaFon approximately for $5 million. And to the portfolio manager "The Renaissance asset management" is pleasant to Dmitry Mikhaylov who purchased papers for "several million dollars" quality of a covering of MegaFon and its leadership in data transmission.
Falling of quotations after the IPO by that was more unexpected that as all brokers spoke, the company is estimated with big discount and among investors there are few speculators, managing directors complain. Vorosh from Morgan Stanley calls start of biddings papers of MegaFon expected and urges not to hurry with estimates. Shareholders and managers of the operator believe in growth of its stocks, he specifies: Telekominvest did not sell any share during the IPO, the CEO of operator Ivan Tavrin and the president of TeliaSonera Lars Nyuberg even made personal investments in share purchase. Tavrin decided to exercise the purchase option of 1.25% of MegaFon at Megafon Investments (100% "subsidiary" of operator) at the placement price, the representative of the company reported. The packet will cost it $155 million.
In 2012 MegaFon the first of large Russian mobile operators gave to the clients the accessibility to mobile services of fourth generation 4G.
2011: The credit of $1 billion at Chinese for purchase of the equipment of Huawei
In June, 2011 MegaFon signed the agreement with China Development Bank on receiving two credit lines for the total amount of $1 billion under purchase of equipment 4G of Huawei "MegaFon". A debt load of MegaFon the lowest among operators of 'the big three'.
In 2011 the decision on creation of MegaLabs subsidiary company which takes unique positions in the field of digital services and content was made. At the end of 2012 MegaLabs started more than 30 projects in the field of electronic payments, digital television, mobile applications and UMS.
In 2011 MegaFon considerably reduced the cost of calls, Sms and the mobile Internet in roaming in the countries of Europe. According to the results of the first winter holiday season the number of the subscribers who used roaming services increased by 1.5 times.
Purchase of Sinterra
On June 3, 2010 it became known that MegaFon signed the purchase agreement of 100% of trunk operator "Synterra" for $745 million taking into account a debt of Sinterra (about $350 million). Is going to pay MegaFon several tranches. Upon the demand of MegaFon of Synterra suspended the placement of exchange-traded bonds on 5 billion rubles planned for June 3, 2010.
Re-election of Board of Directors
In June, 2010 shareholders of MegaFon at an annual general meeting re-elected Board of Directors of the company. Aimo Elokholma was re-elected as the chairman of the board of directors.
In new council were re-elected:
- Aimo Elokholma, Tero Kivisaari (TeliaSonera are nominated),
- Dmitry Vozianov (the independent board member is nominated by telecommunication holding Altimo),
- Vladimir Streshinsky (it is nominated by Telekominvest), the CEO of Telekominvest.
Also joined the board of the company:
- Jan Eric Rudberg (candidate of Altimo),
- Nikolay Krylov, partner of Winston & Strawn and Ardavan Moshiri (candidates of Telekominvest), chairman of the board of directors of Metalloinvest.
New board members are independent directors.
Start of the largest in Siberia convergent network 2G/3G
On December 8, 2010 Alcatel-Lucent and OJSC MegaFon companies announced start of the largest in Siberia to convergent network 2G/3G. Deployment of this network based on the solution of Alcatel-Lucent for convergent radio access networks (RAN) will allow to provide with the advanced mobile services of more than 2.5 million residents of Altai Krai in Siberian Federal District.
Within this project the solution of Alcatel-Lucent for convergent networks RAN which is capable to integrate technologies 2G/3G and 4G and also different mobile frequencies within a single scalable network is deployed. This solution will allow MegaFon to expand the capacity of the network, to increase a coverage and also to increase flexibility, speed and service quality at simultaneous reduction of current expenses. Besides, implementing solution of Alcatel-Lucent for a convergent radio access network (RAN) reduces the level of emissions of hydrocarbons in the atmosphere due to more effective energy consumption.
The used solution includes the distributed base stations and "macro" base stations supporting GSM/EDGE and W-CDMA/HSPA technologies + and guaranteeing wide coverages and high reliability of services. Besides, the solution of Alcatel-Lucent will allow to perform in the future free transition to LTE technology.
"Our project it is possible by the right to call unique for all industry of telecommunications in Russia. For only several months we and our partners not only made installation of the new equipment, but also at once started in work network with support of HSPA+ in the large territory. It will allow both the existing subscribers of MegaFon, and our new clients to use the most modern services of networks 3.75G – to go on-line at high speeds, to make video calls, to talk free of charge on 'long-distance call' through the program of Internet telephony of Multifon and to use other services earlier unavailable in the GSM standard" – the director of the Siberian branch of JSC "MegaFon" Alexey Tyutin commented.
"Now wireless solutions of Alcatel-Lucent are used in 350 commercial networks of different standards. Relying on our experience of network transformation, we together with specialists of MegaFon in the shortest possible time integrated our solution in the existing network of MegaFon and prepared new infrastructure for implementation of commercial services. We are proud of the participation in start of new Russian commercial convergent network and partnership with OJSC MegaFon, one of the most dynamic companies of the Russian telecom industry, - Alexander Tikhonov, the vice president of Alcatel-Lucent in Russia and the CIS countries noted - We are ready to render to OJSC MegaFon the help and support and at the subsequent stages of development of this project".
2009: Reorganization in the form of accession of the regional companies
On July 1, 2009 the company completed reorganization in the form of accession of subsidiaries – regional operating companies.
In 2009 MegaFon only of the Russian mobile operators became the General partner of the Olympic and Paralympic Games of 2014.
In 2009 MegaFon before other telecom operators offered devices under own brand: photoframework and MMS cameras. Then MegaFon the first and only (for 2013) offered clients Multifon service.
2007: Start of the first 3G network in Russia
2006: Start of ruble rates
The Russia's first EDGE network
In 2005 clients of MegaFon the first in Russia got access to services based on EDGE technology. The territory of roaming from MegaFon based on GPRS and EDGE covered already 50 countries of the world on four continents.
The World Cup among pupils of orphanages
The same year MegaFon for the first time held the Open Russian Football Championship among pupils of orphanages and boarding schools "The future depends on you". It is the only tournament in Russia for the children who are on care of the state. In 2013 RFU, ROC, the Ministry of Sport of the Russian Federation and Soccer — to Children Charitable foundation joined number of organizers.
2004: St. Petersburg is the first city in Europe with MMS service
In 2004 St. Petersburg became the first city in Europe where the service of transfer of multimedia messages (MMS) was started. Same year service start Mobile television took place.
2002: The Russia's first rates with free incoming calls
1999: Start of WAP and cellular communication in the subway
1997: Expansion in regions of the Northwest
In 1997 the company began expansion to regions of a northwest part of Russia. By the end of 2000 the subscriber base of "Northwest GSM" totaled more than 250 thousand people, and by the end of 2002 reached 2.8 million people.
1995: Start of GSM network in St. Petersburg
In 1995 in St. Petersburg the GSM network was brought into commercial operation. For the first 12 months of work the company connected 8 thousand subscribers.
1993: Vladimir Putin signs the registration certificate "Northwest GSM"
- ↑ the Otkrytiye Bank provided financing to MegaFon for 15 billion rubles
- ↑ MegaFon will refuse purchase of data centers and will build own
- ↑ of Telia Company divests its stake in Megafon company
- ↑ MegaFon submitted to and media/25/05/2017/5926f48d9a79475c335f2a0e the development strategy till 2020
- ↑ MegaFon purchased Gars Telecom B2B-operator
- ↑ MegaFon announces implementation of initiatives of optimization of a debt portfolio
- ↑ MegaFon borrowed in China
- ↑ of Ericsson will supply to MegaFon the equipment for 7 years
- ↑ On the eve of big changes MegaFon replaced the CEO
- ↑ the IPO of MegaFon: who and why acquired shares of the company
- ↑ took the credit from China Development Bank in the amount of $1 billion for purchase of the equipment of Huawei