End of communication: Megafon and VimpelCom agreed on a deal to divide Euroset

MegaFon will acquire a 50% stake in Euroset from VimpelCom and will own up to 100% of its shares. VimpelCom will buy half of the retail outlets of the chain.
Origin source
"Megafon" and "VimpelCom" agreed on the termination of joint activities within the framework of Euroset's business, the "Megafon", received by Forbes, said.

Euroset, the largest retail network in Russia on the mobile and electronic devices market, is jointly owned by PJSC VimpelCom, the Russian branch of VEON, and MegaFon.

"Based on the agreement reached between the parties, MegaFon will acquire from VimpelCom a 50% stake in Euroset owned by the company and will increase its ownership to 100%. At the same time, Euroset will remain on the market as an operating company. PJSC VimpelCom, in turn, will acquire half of the retail stores of Euroset, - the report says.

"We are grateful to VEON for our partnership in the field of retail development over the past five years. The agreement will allow MegaFon and VEON to implement their independent retail strategies and optimize the distribution network in Russia. The deal will allow MegaFon to improve the quality of service to our customers. At the same time, Euroset will continue to develop as a retail network, "said Sergey Soldatenkov, General Director of MegaFon.

The agreement must be approved by the regulator in accordance with the applicable rules and conditions. The transaction will be completed only after compliance with all preconditions and obtaining regulatory approval. The possible amount of the transaction is not specified.

In Vimpelcom, TASS explained that the deal has not yet been closed and it is premature to discuss the future fate of the Euroset brand. The press service of the operator added that at the moment "can not make any additional comments on the cost."

Earlier Vedomosti reported that VimpelCom and Megafon could split the Euroset liaison offices and the company's debts in the amount of 15 billion rubles, after which the Euroset brand would cease to exist. In December 2016, the president of Euroset Alexander Malis said that there was no decision to liquidate the retailer, and doubted that it would be adopted in 2017.