MegaFon may get minor stake in Svyaznoy–Euroset possible merger

MOSCOW, Mar 27 (PRIME) -- Russia’s MegaFon, one of the country’s biggest mobile operators, is discussing a merger between its retailer Euroset and Svyazvoy with Oleg Malis’ SLV to become a minority owner of the merged firm, a MegaFon spokesperson said late on Monday.

The Federal Antimonopoly Service said that MegaFon had asked for permission to acquire Svyaznoy via its unit, Lefbord Investments Ltd., through which the mobile operator owns Euroset.

Lefbord Investments Ltd. asks the antimonopoly service for permission to acquire Svyaznoy Logistics and Mobile Telecommunications Service.

The authority prolonged consideration of the application until May 21 due to the need to receive additional information.

"We’re considering various options of further development of Euroset. Since the application does not oblige us to sign a deal, and the process of consideration could be lengthy, we've filed documents to the Federal Antimonopoly Service in advance,” a MegaFon spokesperson said.

The operator closed the deal on the split-up of Euroset with its peer VimpelCom in February. After holding the retailer on a parity basis, MegaFon consolidated 100% of Euroset, while VimpelCom agreed to pay 1.25 billion rubles and get about 1,800 stores, or half of the retailer’s chain.

(57.0039 rubles – U.S. $1)

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