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Metromedia buys controlling stake in MagtiCom

21 Sep 2005

US-owned investment company Metromedia International has bought a majority stake in Georgia’s mobile market leader MagtiCom. Metromedia, in partnership with Magticom’s co-founder George Jokhtaberidze, acquired a 14.5% stake formerly owned by fellow US-owned company Western Wireless International for USD43 million in cash. Following Western Wireless’ exit from the GSM operator, Metromedia owns a 50.1% stake whilst Mr Jokhtaberidze owns the remaining 49.9%. It paid an additional USD23.5 million to Jokhtaberidze, as agreed in February, in connection with the company’s acquisition of 8.3% of Jokhtaberidze’s interest in MagtiCom. Metromedia, which also owns a controlling stake in fixed line operator Telecom Georgia, said last week that it would file its 2004 annual report and its reports for the first, second and third quarters of 2005 with the Securities and Exchange Commission (SEC) in the fourth quarter of this year. The company has not filed a quarterly or annual report with the SEC since it published its Q3 2004 report in December, which has left details of the performance of its Georgian subsidiaries decidedly sketchy this year.

Georgia, MagtiCom

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