PRESS: MegaFon to buy out 50% in Euroset from VimpelCom – source

MOSCOW, Mar 21 (PRIME) -- Russian mobile operator MegaFon will consolidate 100% of handset retailer Euroset through a purchase of 50% from its partner, mobile operator VimpelCom, which will get 2,000 out of 4,200 stores of the seller, business daily Vedomosti reported Tuesday, citing several sources.

VimpelCom, working under the Beeline brand, will pay about 1 billion rubles to MegaFon to cover Euroset’s debt, one of the sources told the daily, while the other person mentioned an amount of the deal of 1.2 billion rubles.

One of the sources said that Euroset’s current debt is at about 9 billion rubles.

Euroset will stay independent from MegaFon, which will not change the retailer’s management or fire staff, as one of the conditions of the deal, according to the sources.

A part of Euroset’s employees working at the stores to be handed over to VimpelCom will choose whether to move to VimpelCom or stay with Euroset. The deal should be closed by the beginning of 2018.

Natalya Milchakova, deputy director of Alpari’s analytical department, said the companies estimated the Euroset brand at 3.5 billion rubles. Although the brand’s role is now insignificant on the market conquered by the operator retail, she said.

(57.2847 rubles – U.S. $1)

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