Moscow-based MegaFon (MCX:MFON) has acquired the operations of regional carrier SMARTS in four Russian regions to improve its spectrum holdings.
It has bought SMARTS’ units in the Chuvash Republic and the Samara, Astrakhan and Yaroslavl…
Moscow-based MegaFon (MCX:MFON) has acquired the operations of regional carrier SMARTS in four Russian regions to improve its spectrum holdings.
It has bought SMARTS’ units in the Chuvash Republic and the Samara, Astrakhan and Yaroslavl regions.
MegaFon declined comment on the cost, but a spokesperson said it would disclose the details in its Q3 results, expected in late October or early November.
MegaFon’s director of investor relations and M&A, Dmitry Kononov, said the deal had a number of strategic benefits, but singled out SMARTS’ 900 MHz and 1800 MHz spectrum as the key reason for the transaction.
“We will be able to develop LTE […] faster due to the opportunity to re-farm the 1800 MHz frequencies for LTE networks.”
MegaFon will also acquire the four subsidiaries’ active subscribers.
Kononov said the purchase would allow MegaFon to “sustain its leadership in the Samara market” and “protect MegaFon’s revenue and market share in other cities of the Volga and north-west regions.”
In 2011 Tele2 Russia was reported to have offered US$390m for 97% of SMARTS, but walked away after disagreements among SMARTS shareholders rendered a transaction too risky.
