Russian mobile operator Megafon is reportedly seeking a US$2-3bn loan for the purchase of Mikhail Fridman’s 25.1% stake in the company.
MegaFon is in talks with local banks about obtaining a bridge loan to finance the buyback of its own shares from…
Russian mobile operator Megafon is reportedly seeking a US$2-3bn loan for the purchase of Mikhail Fridman’s 25.1% stake in the company.
MegaFon is in talks with local banks about obtaining a bridge loan to finance the buyback of its own shares from Altimo, the investment arm of Fridman’s Alfa Group, Russian business daily Vedomosti reported according to Dow Jones.
According to the report, , which referred to two unnamed investment banks and sources close to MegaFon shareholders, MegaFon has not yet appointed arrangers for the transaction, but state-controlled banks Sberbank and VTB Capital are among the potential loan providers.
MegaFon would seek to repay the loan by issuing bonds, the report added.
Alfa has intentions to sell its Megafon stake to Alisher Usmanov, who currently has a 31.13% stake in MegaFon via his holding company AF Telecom and reportedly may pay about US$5bn for Fridman’s stake, thereby gaining a majority shareholding.
Sweden’s TeliaSonera, which has a 43.8% in MegaFon, issued a statement earlier this month confirming it is in talks with AF Telecom and Altimo about MegaFon’s future ownership and governance.
MegaFon and Altimo were not immediately available for comment.
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