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Armenian Finance Minister’s Family Buys Orange Armenia

The Orange Group has announced on Wednesday, July 22 that it has entered into exclusive discussions with Ucom, an Armenian telecommunication company that belongs to the family of the RA Minister of Finance Gagik Khachatryan, to sell 100% of its mobile subsidiary Orange Armenia.

“Although significant progress has been made in recent years, both in terms of subscriber numbers and profitability, largely thanks to the efforts made by its staff, Orange Armenia does not have the necessary scale to carry out by itself the massive investments required to enable it to offer its customers convergent services,” the company stated. 

As reported today by Armenian daily “Haykakan Zhamanak,” experts estimate that the market price of Orange Armenia could range from USD 80 million up to USD 120 million. This assessment is based on the company's financial reports, according to which since it's establishment in 2009, Orange Armenia has been running at a loss amounting to billions of drams. 

As indicated by last year's report, the assets of Orange Armenia amounted to AMD 48 billion (USD 100 million). However, the company's commitments have exceeded AMD 12 billion (USD 25 million). Based on these figures, “Haykakan Zhamanak” wrote, one can assume that Ucom has paid no more than $ 100 million for Orange Armenia.