Monday, 15 October 2012 19:50
MOSCOW: Russian mobile phone company MegaFon, preparing for a stock market listing in London, said on Monday it could pay up to $1.33 billion to buy half of the country's leading cellphone retailer Euroset.
The deal would give MegaFon more shops through which to sell its products and services in Russia's highly competitive mobile market. Euroset has 5,500 stores in Russia and Belarus. MegaFon runs 1,750 of its own stores and 2,000 franchisee shops, according to VTB analysts.
MegaFon approved plans for the purchase last month.
MegaFon's rival Vimpelcom, Russia's third-largest mobile firm, will hold the other 50 percent stake in Euroset. Under the deal , MegaFon plans to buy 25 percent of Euroset for up to $590 million from tycoon Alexander Mamut, who has been looking to sell his holdings since last December. .
At the same time, MegaFon's main shareholder Alisher Usmanov's Garsdale company will buy another 25 percent from Mamut, f ...