Russian mobile operator MTS has sold its Armenian unit, MTS Armenia, to Fedlico Group after receiving regulatory approval.

Cyprus-based Fedlico has snapped up 100 percent of shares, plus the MobiDram payment system, a wholly owned subsidiary of MTS Armenia.

Financial terms of the transaction were not disclosed.

MTS noted that it had gained regulatory approvals from the State Commission for the Protection of Economic Competition and the Public Services Regulatory Commission (PSRC).

The PSRC had previously rejected the deal in early 2023, before giving the transaction the approval in mid-November.

"The transaction is a continuation of implementing the MTS Group's transformation strategy aimed at further developing the ecosystem and core business in Russia. When there are favorable offers, MTS sells non-core assets or assets with limited potential for growth in value, directing the proceeds to developing key ecosystem business in Russia," said MTS in a statement.

MTS Armenia has more than two million mobile subscribers.