MegaFon announces acquisition of 100% interest in four subsidiaries of regional mobile operator SMARTS
Aug 18, 2015
Moscow, Russian Federation (17 August 2015) — Public Joint Stock Company “MegaFon” (LSE: MFON), a leading Russian telecommunications operator (“MegaFon” or the “Company”), announces the completion of the acquisition (the “Acquisition”) of a 100% interest in JSC “SMARTS-Samara”, a 100% interest in CJSC “Astrakhan GSM”, a 100% interest in CJSC “Yaroslavl GSM” and a 100% interest in CJSC “SMARTS-Cheboksary” (the “Companies”).
The Acquisition of the Companies will strengthen MegaFon’s position in 900/1,800 MHz spectrum in the Chuvash Republic and the Samara, Astrakhan and Yaroslavl regions of Russia.
Mr. Dmitry Kononov, Director — Investor Relations and M&A, commented: “The Acquisition will provide MegaFon with a number of strategic benefits, including improvement of our position in 900/1,800 MHz spectrum in the region by utilizing cost-effective network development. We will be able to develop LTE 1,800 faster due to the opportunity to re-farm the 1800 MHz frequencies for LTE networks. The Acquisition will also allow the Company to sustain its leadership in the Samara market, as well as protect MegaFon’s revenue and market share in other cities of the Volga and North-West regions”.