Metromedia to sell Georgian telecoms assets

American firm Metromedia International Group has said it will be selling its holdings in Georgian cellco MagtiCom, long-distance operator Telecom Georgia and internet provider Telenet, in which it holds 50.1%, 21% and 26% stakes respectively. The sales, to a consortium of investment companies, are due to be closed in December. The investment group comprises Dubai-based investment house Istithmar, a Georgian unit of private equity house Salford Capital Partners and communications merchant bank Emergent Telecom Ventures. The company and the consortium expect a binding sale and purchase agreement could be executed in early December, whilst Metromedia International Group intends to file a Chapter 11 bankruptcy plan, it said. It is estimated by TeleGeography’s GlobalComms database that MagtiCom had 675,000 mobile subscribers at the end of June 2006, about 45% of the market.