Russia’s MegaFon shareholders approve tower unit spinoff

MOSCOW, Sep 20 (PRIME) -- Russian mobile operator MegaFon’s shareholders have approved reorganizing the company and spinning off a unit, the First Tower Company, which will manage all its base stations, according to the operator’s documents released Tuesday.

The charter capital of the unit will amount to 5 million rubles and be split into 50 million common shares. The money will be taken from MegaFon’s undistributed profit for previous years. MegaFon will be a 100% owner of the unit.

The share purchase price for opposing shareholders will be 557 rubles per share.

The First Tower Company will be headed by Alexander Teremetsky, who will combine the new positon with the one of the director for work with connection operators at MegaFon.

MegaFon will hand over more than 15,000 antenna mast facilities, including equipment installed along roads, to the unit. The value of assets and liabilities to be transferred will not exceed 10% of balance value of MegaFon’s assets as of June 30 and will not be more than 47.179 billion rubles.

(64.9173 rubles – U.S. $1)

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