MegaFon to merge Euroset with another retailer soon after split

MOSCOW, Dec 1 (PRIME) -- Russian mobile operator MegaFon will agree with a retailer, most probably Svyaznoy, to merge its part in Euroset soon after splitting the asset with its partner, VimpelCom, is closed, MegaFon CEO Sergei Soldatenkov told reporters on Friday.

“MegaFon hopes to agree on a merger of Euroset with another player on the Russian retail market within a month after the closure of the deal with VEON,” Soldatenkov said, referring to VimpelCom’s owner.

“We’re not interested in consolidation of Euroset results in our report, this is why the second deal should be definitely signed within a month.”

MegaFon Executive Director Gevork Vermishyan said that the operator cannot confirm that the deal will be with Svyaznoy, although it is the most probable scenario. “We want these two dates to coincide as close to each other as possible,” he said.

In July, MegaFon and VimpelCom, which own Euroset on a parity basis, agreed to split the retailer so that MegaFon will buy 50% from VimpelCom, which will purchase half of Euroset’s stores for 1.25 billion rubles. The antimonopoly service endorsed the deal, which is to be closed in January–March 2018.

Vermishyan said that it has already been decided how Euroset’s stores will be divided between MegaFon and VimpelCom. “We don’t have a reason to think that the deal may be delayed, though we’re slightly behind the weekly schedule,” he said.

(58.5814 rubles – U.S. $1)

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