MegaFon to fully get Euroset, VimpelCom to own half of stores

MOSCOW, Jul 12 (PRIME) -- Russian mobile operator MegaFon will fully consolidate handset seller Euroset after buying a 50% stake from its fellow VimpelCom, which will purchase half of the retailer’s stores, according to MegaFon’s documents released on Wednesday.

“Euroset will remain on the market as an operating company,” MegaFon said.

MegaFon’s General Director Sergei Soldatenkov said that the deal will allow the both mobile operators to implement their independent retail strategies and optimize distribution networks in the country.

VimpelCom’s CEO Kjell Morten Johnsen said the maturity of the Russian telecom market is driving the operators’ retail focus from SIM card sales to retention and better services for existing customers, which requires operators to develop their own high-performing retail chains. “The transaction reinforces VimpelCom’s monobrand strategy and will allow us to double our retail network in Russia,” he said.

Euroset’s President Alexander Malis said that VimpelCom has been the retailer’s shareholder for almost nine years, and MegaFon for five years.

“It was a very interesting teamwork. However, the shareholders have recently had different views on our future. The situation is solved now, and we see new promising opportunities for development,” Malis said in a Euroset statement.

“Under the agreement, a part of premises of Euroset will move to VimpelCom. It’ll be a lengthy and smooth process, and it won’t bring troubles to the company. We won’t downsize our staff, but, on the contrary, we’ll open new stores and engage new people.”

Euroset will continue to develop as an independent company and cooperate with its partners. At present, the company runs more than 4,000 stores in over 1,500 cities in Russia and Belarus. It employs some 26,000 people.

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