Moscow, Russia - MTS PJSC (NYSE: MBT, MOEX: MTSS), the leading telecommunications provider in Russia and the CIS, invested RUB 1.15bln in the development of Ozon Holdings (OZON) through an additional share issuance. As a result, MTS's stake in the authorized capital of Ozon will increase from 11.2% to 13.7%.
Alexey Kornya, Vice President, Finance, Investment, Mergers and Acquisitions, commented, "Since 2014, we have worked both through our investment in and in partnership with Ozon. During this time, Ozon has seen exceptional revenue growth and improved operational performance. Now, however, is an opportune time to expand, and we believe that Ozon can use the additional resources to increase its reach and further improve its efficiency. All the while, we continue to gain valuable insight into the Internet economy as we boost our own e-commerce efforts and pursue our 3D strategy by expanding the digital services available to our clients. Given our recent acquisitions of Tiсketland.ru and Ponominalu.ru, our investments in OZON support MTS evolution into a strong Internet player by enhancing our position in online retail."
MTS also signed option agreements, which give the Company right to acquire shares within 12 months from the date of signing for up to RUB 582 million, which would allow to increase its stake to 14.7%.
MTS became the shareholder of OZON in April 2014 through acquisition of 10.8% shares for USD 75mln. Then MTS increased its stake to 11.2% throughout a series of transactions with minority shareholders.
Ozon is one of the largest multi-category online retailers in Russia (over 20 categories). The company owns its own logistics network with large warehouses (60 thousand sq.m.). At the end of 2017, the number of unique buyers in OZON doubled and amounted to 3.2 million people.
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For further information, please contact in Moscow:
Joshua B. Tulgan
Director, Department of Corporate Finance and Investor Relations
Mobile TeleSystems PJSC
Tel: +7 495 223 2025
Learn more about MTS. Visit the official blog of the Investor Relations Department at www.mtsgsm.com/blog/