Comstar makes second offer for MGTS shares

28 Mar 2006

Russian telco Comstar has made a second offer for common shares held by minority shareholders of Moscow fixed line operator MGTS. The terms of the deal, USD17.5 per share, are identical to the first offer made on 14 December, when Comstar bought a 4.213% stake in MGTS. In early March, the company bought another 3.816% of MGTS shares, bringing its holdings to 63.65% of the company’s common shares, or 53.04% of its authorised capital. State-owned telecoms holding Svyazinvest is MGTS’ largest minority shareholder, owning 28% of voting shares, or 23.3% of its authorised capital. Svyazinvest will not endorse the Comstar proposal without government approval. The government has ordered an assessment to consider the possible impact ahead of Svyazinvest’s privatisation later this year.

Russia, Comstar United TeleSystems (Comstar UTS)