Russia’s MegaFon acquires 50 % stake in mobile retailer Euroset for $1.1 bn
08 Dec 2012
MegaFon, Russia's second-largest mobile operator, has agreed to buy half of the country's largest cellphone retailer Euroset Holding NV, to take on larger rival MTS in a complex deal valued at approximately $1.1 billion.
VimpleCom Ltd, Russia's third-largest mobile company, which held 49.9-per cent interest in Euroset, has increased its stake to 50 per cent following the MegaFon deal.
Lefbord Investments Ltd, a company jointly owned by MegaFon and its controlling shareholder Alisher Usmanov's Garsdale Services Investment Ltd has acquired 50-per cent stake in the retail chain worth around $2.3 billion including net debt.
The valuation is lower than the $3 billion sought by Euroset last year in a failed London initial public offering.
The buyers agreed to pay additional $100 million if Euroset meets certain targets in the first half of 2013.
Following the transaction, both Lefbord and VimpelCom will have equal rights in Euroset.
