Russian mobile operator MegaFon has secured a US$1.5bn loan as talks regarding changes to its ownership and governance continue.
A MegaFon spokesperson confirmed that the company has taken out the US$1.5bn four-year loan with state-controlled…
Russian mobile operator MegaFon has secured a US$1.5bn loan as talks regarding changes to its ownership and governance continue.
A MegaFon spokesperson confirmed that the company has taken out the US$1.5bn four-year loan with state-controlled Sberbank and that the proceeds will be involved in “development plans”, however he did not comment further.
The spokesperson also confirmed the company had agreed to extend the term of a six-month US$2bn bridge loan with three banks – Citibank, BNP Paribas and Barclays – to one year.
The news comes as MegaFon shareholders reportedly prepare for a US$4bn IPO on the London Stock Exchange (LSE).
According to a Reuters report, the IPO would depend upon a buyback of Russian businessman Mikhail Fridman’s 25.1% stake in the company, which he holds via the Alfa Group’s investment arm Altimo, for US$5bn.
The report, which cites sources close to the matter, states MegaFon could use the funds to buy back Fridman’s stake and then cancel the stock. This would be the most cost-effective way for Usmanov, who has a 31.13% stake in the company, to gain a controlling shareholding, the report states.
An earlier Reuters report citing banking and industry sources said MegaFon may float up to 20% of the company, valued at $4bn, on the LSE in the second half of this year. This would involve Sweden’s TeliaSonera – currently MegaFon’s largest shareholder with a 43.8% stake – reducing its stake.
Earlier this month, TeliaSonera issued a statement confirming it is in talks with Usmanov’s AF Telecom and Altimo about MegaFon’s future ownership and governance.
The statement followed reports that Usmanov may pay up to US$5bn for Fridman’s MegaFon stake, thereby gaining a 56.4% shareholding.
MegaFon declined to comment on the shareholder talks or the possibility of the company listing on the stock exchange.
