MegaFon says Svyaznoy, Euroset to retain brands after merger

MOSCOW, Apr 28 (PRIME) -- Stores of largest Russian portable electronics sellers Svyaznoy and Euroset will keep their brands after a merger, a spokesperson for mobile operator MegaFon, which owns Euroset, said on Saturday.

“Stores will keep on working without changes under two brands: Svyaznoy and Euroset,” the spokesperson said.

MegaFon and group SLV, a controlling shareholder of group of companies Svyaznoy, agreed earlier on Saturday on the merger of their retail chains, which will count over 5,000 outlets in total.

Under the agreement, SLV will be a controlling shareholder of the merged entity, while MegaFon will have a minority stake. MegaFon’s subsidiary Lefbord Investment Ltd. will hand over 100% of shares of Euroset N.V., which owns operating companies of group Euroset, to Cyprus-domiciled DTSRetail LTD, which holds operating firms of group Svyaznoy.

As a result, Lefbord Investment Ltd. will receive 25% plus one share and two seats on board of directors of the merged company. The partners intend to close the deal by the middle of May.

End