Russia’s Federal Antimonopoly Service (FAS) has extended its review of MegaFon’s proposed US$1.33bn acquisition of a 50% stake in the nation’s largest mobile phone retailer, Euroset.
FAS deputy head Andrey Golomolzin told TelecomFinance the…
Russia’s Federal Antimonopoly Service (FAS) has extended its review of MegaFon’s proposed US$1.33bn acquisition of a 50% stake in the nation’s largest mobile phone retailer, Euroset.
FAS deputy head Andrey Golomolzin told TelecomFinance the authority needs about two more months to complete its evaluation of the deal, which includes seeking input from other market participants.
At this stage, Golomolzin said the authority is more likely than not to approve the deal. It will have a much clearer idea, he added, once it has received all outside input.
A spokesperson for MegaFon said the company expects a final decision on the matter by 20 December.
MegaFon announced on 16 October that it had agreed to pay US$590m to acquire a 25% stake from Russian investor Alexander Mamut. The mobile operator said it would buy an extra 25% stake from Alisher Usmanov’s Garsdale Services within three years, valuing the total transaction at US$1.33bn.
The MegaFon spokesperson said today that the company does not anticipate the FAS review extension will affect the planned IPO.
MegaFon announced on Monday that it has decided to postpone the marketing campaign for the IPO until it has updated the prospectus to include recent acquisitions and third-quarter results. The company is expected to announce the results in November.
