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March 1, 2019 www.intellinews.com I Page 12
The ruble denominated Moscow Exchange In- dex (MOEX) Russia Index rose 0.24% to 2,494.63, close to an all time high, while its sister index, the dollar denominated Russia Trading System (RTS) increased 0.26% to 1,201.57. Since the start of the year MOEX is up 5.2% and the RTS index is up 12.3%.
Russia’s MTS to sell its stake in online retailer Ozon to Sistema
bne IntelliNews
Russia’s leading mobile phone company Mobile TeleSystems (MTS) says it will sell its 18.7% stake in Russian online retailer Ozon Holdings to AFK Sistema for RUB7.9bn ($120mn).
MTS paid a total of RUB5.9bn for the stake: RUB2.7bn in 2014 and RUB3.2bn in 2018.
As a result of the deal, MTS will have no owner- ship in Ozon, while Sistema will control 35.6%, of which 16.3% will be through Sistema VC, in which Sistema has an 80% stake.
The deal is targeted to close in early March.
The payment will be made in three installments, with the third paid in July 2021 (a market interest rate will apply).
“The MOEX Russia Index and the RTS Index are finishing the day in a symbolic plus, departing from the session’s high. The ruble indicator could not hold above the psychologically important mark of 2,500 points, and the dollar one consolidated into the area of 1,200 points thanks to the strength of the ruble against the dollar,” Veles Capital analyst Yelena Kozhukhova said, as cited by PRIME.
The sale will be at the minimum Ozon valuation, with a delayed payment scheme (plus interest) – suggesting a c30% premium to MTS investments, reports BCS.
“The deal suggests a Rb42bn valuation for 100% Ozon. The price is at the lower end of valuations for the recent deals, in which Sistema and Baring Vostok increased their stakes in Ozon – Kommersant. The price suggests a c30% premium to MTS investments, and a c10% annualized return. Strategy-wise, we were not big believers in the synergies between the carrier and e-tailer,” Maria Sukhanova of BCS Global Markets said in a note.