Russian telco MegaFon has agreed to pay about US$82m to settle claims and disputes relating to its 2010 purchase of local backbone operator Synterra.
The Moscow-based operator announced in a stock exchange filing that the settlement agreement resolves a…
Russian telco MegaFon has agreed to pay about US$82m to settle claims and disputes relating to its 2010 purchase of local backbone operator Synterra.
The Moscow-based operator announced in a stock exchange filing that the settlement agreement resolves a claim from Synterra’s former owner, PromSvyazCapital, for deferred and contingent consideration under the June 2010 sales agreement. The original amount due was US$96m.
The telco explained that the consideration under the new settlement agreement consists of US$75m for its 60% interest in Synterra-Media, which has various media and internet TV projects, and 100% interest in construction company Absolut. It also includes as a cash payment of US$7m.
Absolut owns the building in which Synterra-Media’s Moscow headquarters are located.
MegaFon did not provide details on the nature of the claims or disputes.
MegaFon, which is listed in Moscow and London, agreed in June 2010 to pay US$745m for Synterra, which included the target’s debt to third parties. At the time, MegaFon said it would make payments in several tranches.
The telco said the acquisition would strengthen its position in the broadband internet market, noting that Synterra’s widespread network infrastructure would significantly enhance its own network.
