Sistema, Russia’s largest diversified direct investment company called an EGM to approve the agreement with Svyazinvest, Russia’s larges telecom holding company, to swap shares in MGTS, the Moscow City Telephone Network for shares in Russian wireless…
Sistema, Russia’s largest diversified direct investment company called an EGM to approve the agreement with Svyazinvest, Russia’s larges telecom holding company, to swap shares in MGTS, the Moscow City Telephone Network for shares in Russian wireless operator, SkyLink. The share swap will be completed, if approved by the shareholders, after 2 August when the ballot of Sistema’s shareholders closes.
Earlier in the month Comstar, Russia’s main telecom operator had agreed to sell its 25%+1 share stake in Svyazinvest for Rbs26bn (E686m) and use the proceeds to pay down its debt to Sberbank.
The swap would allow Svyazinvest to hold 100% of the share capital of SkyLink and Sistema, Comstar’s parent company would acquire 23.33% of MGTS. Comstar already held 69.93% of MGTS, which would take the combined holding of Sistema to 93.26% of MGTS.
The Russian government is backing the reorganisation of Svyazinvest, which will see the telecoms holding company’s regional subsidiaries merged into Russia’s long-distance telecom operator, Rostelecom. Svyazinvest holds 38% of Rostelecom and has agreed to buy Development Bank’s 10% stake in the company for at least Rbs230 (E6) per share by 2013.
