EON and MegaFon’s divestiture of Euroset joint venture


Debevoise & Plimpton LLP has advised PJSC MegaFon (“MegaFon”) in its transaction with PJSC VimpelCom (VimpelCom”), a Russian subsidiary of VEON Ltd. (“VEON”), to discontinue their Euroset joint venture.

VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a leading global provider of connectivity and internet services headquartered in Amsterdam and serving more than 240 million customers, and PJSC “MegaFon” (LSE: MFON), a leading Russian provider of integrated digital services (“MegaFon”), completed the transaction to end their Euroset joint venture.

Pursuant to terms of the transaction, PJSC VimpelCom, the Russian subsidiary of VEON, acquired half of Euroset’s retail stores and pays to MegaFon RUB 1.25 billion (approximately USD 20 million), subject to certain adjustments, while MegaFon acquired PJSC VimpelCom’s 50% interest in Euroset, resulting in MegaFon now owning 100% of Euroset with all of its debt and liabilities. As a result of the transaction, PJSC VimpelCom has fully disposed of its interest in Euroset with all of its rights and obligations. Prior to the transaction, Euroset, Russia’s largest mobile and electronics retail network, was co-owned by PJSC VimpelCom and MegaFon.

The Debevoise team advising MegaFon was led by the managing partner of the Moscow office Alan Kartashkin (Picture), and included international counsel Nik Kutnaks and associates Tamara Kulyk, Mikhail Movshovich and Elena Sevastianova.

Involved fees earner: Alan Kartashkin – Debevoise & Plimpton; Nik Kutnaks – Debevoise & Plimpton; Tamara Kulyk – Debevoise & Plimpton; Mikhail Movshovich – Debevoise & Plimpton; Elena Sevastianova – Debevoise & Plimpton;

Law Firms: Debevoise & Plimpton;

Clients: MegaFon PJSC;