Yota decided to abandon the Cypriot structure; On December 8, Maxiten Co Limited withdrew from Scartel LLC (Yota’s legal entity), as evidenced by changes in the Unified State Register of Legal Entities, to which RB.RU drew attention.
As of December 8, Maxiten’s 8% stake in Scartel is listed as an equity interest in the LLC. The remaining 92% is owned by PJSC Megafon.
Megafon and Yota did not comment on the changes. According to the expert of the advisory agency Anna Poponina, the departure of the Cypriot company will simplify business in Russia in terms of taxes and transfers between participants at the international level.
Whether Megafon consolidates the company or resells its stake depends on Yota’s annual financial performance, the expert adds.
Yota’s revenue at the end of 2022 amounted to 39.5 billion rubles, up from 36.8 billion rubles in 2021. The company’s net profit in 2022 is estimated at 5.1 billion rubles, up from to 7 billion rubles the previous year.
Alexander Baranov, managing partner at law firm BCA Unternemensberatung, notes that Scartel’s move fits well with the trend of the past two years among Russian companies.
Specifically for a telecommunications company, the rejection of a shareholder from a “hospitable” country is important from the point of view of the development of its own telecommunications technologies and the expansion of access to radio frequencies in the Russian Federation.
“In addition, in general, the company’s business, the provision of telecommunications services, is a critical infrastructure for the country, which under current conditions tacitly implies the exclusion of control by hostile countries,” explains the expert.
The company’s refusal to have a Cypriot structure is a reaction to overall political and sanctions risks, says Emil Yusupov, managing partner at law firm Intercession.
He recalled that, under sanctions, dividends are paid to shareholders from “hostile” countries in a special way: in type “C” accounts, which imposes serious restrictions.
In addition, the presence of investors from “hostile” countries as shareholders may hinder the attraction of funds from Russian banks and investors.
“This also raises the question of the possibility of access to comprehensive support programs of the Russian government. These changes could serve as a key motivator for Yota to leave the Cypriot structure,” Yusupov suggests.
In the fall of 2022, Megafon and Yota began merging their retail networks. The process is scheduled to be completed by the end of 2023.
Author:
Natalia Gormaleva
Source: RB
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