MTS, the Russian telco, has completed the acquisition of a 29% stake in MGTS (Moscow City Telephone Network) for RUB10.56bn (US$343.7m).
As a result MTS’ ownership stake in MGTS rises to 99.1% of ordinary shares and 69.7% of preferred shares, which…
MTS, the Russian telco, has completed the acquisition of a 29% stake in MGTS (Moscow City Telephone Network) for RUB10.56bn (US$343.7m).
As a result MTS’ ownership stake in MGTS rises to 99.1% of ordinary shares and 69.7% of preferred shares, which total 94.1% of MGTS charter capital.
MTS acquired CJSC Sistema-Inventure from JSFC Sistema, the companies said in separate statements.
Sistema-Inventure owns 29% of ordinary shares in MGTS.
MTS said that as part of the transaction MTS would repay debt of RUB10.41bn (US$338.8m) owed by Sistema-Inventure to Sistema before the end of the year.
A fairness opinion was provided to MTS’ Special Committee established to oversee the transaction process by Citigroup Global Markets. Cleary Gottlieb Steen & Hamilton served as legal advisor on the transaction, while Ernst & Young provided advice and analysis of the commercial, tax and financial aspects of the transaction.
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