MegaFon says to hand over towers to independent operator

MOSCOW, Oct 27 (PRIME) -- Russian mobile operator MegaFon and investment group Kismet Capital Group have agreed to establish a leading 94.2 billion ruble independent firm on the tower infrastructure market, MegaFon said on Wednesday in a statement.

“The company will be set up on the basis of the assets of First Tower Company - 17,000 towers and supporting structures – and operator Vertical – more than 5,000 facilities. The merged company will become a leading independent player with a total portfolio of more than 22,000 towers,” MegaFon said.

Under the deal, MegaFon will get 25% in the firm.

“MegaFon can focus on the development of its core business while keeping a stake in the merged company with a serious growth potential, including placement on the public market,” Ivan Streshinsky, chairman of the mobile operator’s board of directors, said.

The deal, to be closed by the end of 2021, will be financed by Kismet Capital Group, which will be the major shareholder, and Sberbank.

MegaFon also said that the merged tower business will be fully independent, which means that neither MegaFon nor any other telecom operator will be able to get control in the firm or the majority on the board of directors.

(69.5526 rubles – U.S. $1)

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