Published: September 1, 2011
Russian telecom announces US$80.5mn takeover.
Rostelecom, Russia’s state-owned telecom company, has become the sole owner of Volgograd-GSM after it bought the shares in the company that it did not already own.
Volgograd-GSM provides GSM mobile services in Volgograd, covering 90% of the region’s 2.6mn citizens.
Rostelecom bought technology group SMARTS’ 50% shareholding for RUB2.3bn (US$80.5mn) in cash.
Volgograd-GSM, which will be integrated into Rostelecom’s mobile asset base, had 855,000 subscribers in the first three months of 2011. By the end of 2010 it had a 20% share of the region’s GSM market, which generated revenues of some RUB1.7bn and EBITDA of RUB708mn.
Rostelecom president Alexander Provotorov said the company will develop Volgograd-GSM’s mobile services in the region.