USM Holdings Ltd (USM) revealed the purchase of a 10% stake in OJSC MegaFon from the mobile operator's majority shareholder Alisher Usmanov, MegaFon informed.
MegaFon was notified that the 10% block of shares would be distributed among and acquired by the holding company's managers including Ivan Streshinsky, Chairman of the Board of Directors at Metalloinvest, and Ivan Tavrin, CEO of MegaFon, as well as members of the USM Board of Directors. The changes in the shareholding structure are meant to motivate and incentivize the key managers of the group in pursuance of the decisions made during MegaFon's initial public offering.
MegaFon is also aware that Farhad Moshiri, given his leading executive position as Chairman of the USM Board of Directors, will now vote both his own 10% block of shares and the 30% block of shares belonging to the second largest shareholder. Besides, simultaneously with the above-stated changes, Mr. Usmanov's two long-term business partners will each convert their long-term indirect economic ownership interest in USM into a direct participation interest equal to 1% of USM shares. As a result of this transaction, A.Usmanov will remain the largest USM shareholder with 48% of the voting shares in the company.
No reshuffle of MegaFon's current Board of Directors is intended as a result of these changes.
The USM Holdings group currently owns 53.65% of the company's shares.
OJSC MegaFon (tax number: 7812014560) established in 1993 as CJSC North-West GSM and renamed as OJSC MegaFon in 2002, is currently the second largest mobile operator in the Russian Federation providing services to more than 64 million subscribers. MegaFon's subsidiaries are operating in Tajikistan, Abkhazia and South Ossetia.
MegaFon's authorized capital is RUB 62 million represented by 620 million shares at par value of 0.1 rubles. MegaFon's shareholding structure is as follows: TeliaSonera (25.17%), AF Telecom (50% plus 1 share), MegaFon's subsidiary company MegaFon Investments (Cyprus) Limited (7.57%), MegaFon CEO I. Tavrin (2.5%).
IFRS net profit of OJSC MegaFon for H1 2014 decreased by 19.4% to RUB 21.114 billion from RUB 26.205 billion for the same period in last year. Consolidated revenue grew by 8.3% to RUB 151.542 billion from RUB 139.954 billion, OIBDA by 0.2% to RUB 66.801 billion from RUB 66.683 billion. OIBDA margin decreased to 44.1% compared from 47.6% in 2013.
According to the DataCapital information retrieval system, RAS net profit of OJSC MegaFon for H1 2014 decreased by 11% to RUB 25.752 million from RUB 28.934 million the year before. Revenue increased by 7.13% to RUB 139.153 million from RUB 129.888 million, GP by 0.02% to RUB 66.381 million from RUB 66.4 million. Pre-tax profit decreased by 10.07% to RUB 32.585 million from RUB 36.236 million.