Russian telecoms group MTS has agreed to acquire Tascom, an alternative operator in Moscow, for up to US$54.9m including debt, via subsidiary Moscow City Telephone Network.
MTS announced it bought Tascom, which services corporate clients, from…
Russian telecoms group MTS has agreed to acquire Tascom, an alternative operator in Moscow, for up to US$54.9m including debt, via subsidiary Moscow City Telephone Network.
MTS announced it bought Tascom, which services corporate clients, from Bester Investments, owned by the European Bank for Reconstruction and Development (EBRD), its related funds and private investors.
The telco paid US$38.3m at the transaction’s close and has agreed to pay an extra US$6.9m in 12 months, provided certain requirements are met. MTS has also taken on Tascom net debt of US$9.7m.
MTS board chairman and chief operating officer, Alexander Popovskiy, said the acquisition was in line with the group’s plans to develop as an integrated operator.
“Given the rising demand for data services in Moscow, we see significant potential for enhancing the company’s position in Russia’s most lucrative market. We are confident that with better standing in the Moscow market, MTS will be able to attract major clients with presence across Russia, offering them nationwide VPNs [Virtual Private Networks], and strengthen our leadership in the corporate market.”
MTS said Tascom provides a variety of telecoms services, including VPNs, local and international calling, broadband internet and wifi access. It also owns a 1,100km fibre-optic network in the Moscow region and a wireless network.
An MTS spokesperson said the company is still considering whether to participate in Russia’s LTE tender, launched by the communications ministry early this month. The results of the tender are set to be announced on 12 July.
