USM Telecom, the digital business of USM Holding, and MegaFon together with partners will set up their joint venture Digital Holding in Uzbekistan, MegaFon informed.
The joint venture will include Uzbekistan's telecom market leader Ucell and USM's assets in Uzbekistan, CRPT Turon and ICS Holding Uzbekistan.
The Government of Uzbekistan acting through the State Assets Management Agency will transfer the ownership of a 100% equity stake in telecom operator Ucell to the joint venture. The Russian side will invest $100 million in the development of Digital Holding and contribute USM's subsidiariesCRPT Turon and ICS Holding Uzbekistan to the JV.
To invest in the joint venture, USM Telecom and MegaFon have established Digital Invest, a company owned by the parties on a parity basis (50%). Digital Invest will hold 51%, the State Assets Management Agency of Uzbekistan 49% in the new joint venture.
The final part of the deal is scheduled to be completed during 2021.
PJSC 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 69 million subscribers. MegaFon's subsidiaries are operating in Tajikistan, Abkhazia and South Ossetia.
