Svyazinvest, Sistema, Comstar Sign MoU On Share Swap - Report
November 20 2009 - 11:28AM
Dow Jones News
The state holding that controls Russia's fixed-line telecoms
network, OAO Svyazinvest, has signed a long-awaited asset swap
agreement with OAO Comstar United TeleSystems (CMST.RS) and parent
company AFK Sistema (AFKS.RS), Interfax news agency reported
Friday.
The agency cited people familiar with the situation, one of whom
said that the memorandum of understanding signed between the
companies stipulates that the deal should be completed by Feb.
15.
Comstar owns a 25% stake in Svyazinvest and Svyazinvst owns 28%
of the ordinary shares in Comstar's largest business OAO MGTS,
which runs the fixed-line network in Moscow.
As part of the deal, Svyazinvest and Comstar will swap these
stakes. In addition, Russia's state development bank VEB will
assume Comstar's 26 billion ruble ($901 million) debt to OAO
Sberbank (SBER.RS), and Comstar will also give Svyazinvest 100% of
Sky Link, a small mobile operator.
Sistema currently only owns half of Sky Link, but Interfax
reports that the company will buy the other half ahead of the deal
with Svyazinvest.
Auditors Ernst & Young were commissioned to value these
assets and Interfax reports that the prices will be determined by
the end of the year.
Agency Web site: www.interfax.ru
-By Moscow Bureau, Dow Jones Newswires; +7 495 937 8445
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