Kommersant is reporting that Russia’s largest mobile phone retailer ‘Evroset’ has been sold to investment company A.N.N. which is owned by Russian businessman Aleksandr Mamut.

The newspaper reports that he is believed to have paid $1.25 Billion for 100% ownership, including debt of around $850 million.

This report comes as another Russian newspaper ‘Vedomosti’ is reporting that Russia’s largest mobile operator MTS has registered a company offshore with the intention of buying Evroset.

Previously Evroset management has denied reports there is any intention of selling.

Over the summer the retailer has come under investigation by the Russian Public Prosecutor, with the arrest of company Vice president, Boris Levin, and Deputy Chief of Security, Andrey Yermilov.