Russia’s MegaFon has no plans to float tower unit

MOSCOW, Mar 17 (PRIME) -- Russian mobile operator MegaFon has no plans to float its infrastructure unit, the First Tower Company, and negotiations with private investors can start no sooner than in six months, General Director Ivan Tavrin told reporters Thursday.

“We are not going to put our tower company on the bourse. I’m sure that Russia does not have companies, the number of towers and the cash money flow that will be provided by operators to put it on the stock exchange,” Tavrin said.

MegaFon decided earlier to spin off its tower bases into a separate company, which could be later offered for sale.

Tarvin said that the operator can sell the First Tower Company partially or fully, as both options have advantages. “It primarily depends on conditions, on how the tower company works with your towers, from the financial climate and other factors,” he said.

MegaFon will not speed up the sale. “We don’t think that if we are the first to sell our towers, we will be able to earn the biggest money and sign the best deal. We believe that if we thoroughly prepare, we’ll manage to pocket a high-quality investor and win a high-quality future operating history,” Tavrin said.

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