Comstar UTS acquires 100% of Ukrainian subsidiary

6 Jun 2007

Russian telco Comstar UTS has acquired the remaining 25% stake in its Ukrainian subsidiary Comstar-Ukraine that it did not already own from Ukrainian firm Neotel, for a total cash consideration of USD900,000. In accordance with local laws, Comstar purchased 24% stake in Comstar-Ukraine, while UTS MGTS (a 100% subsidiary of MGTS), acquired the remaining 1%. Mladen Pejnovic, Comstar’s Vice President for International Business Development, commented: ‘This acquisition was done in accordance with the company’s strategy of consolidating minority shareholdings in its subsidiaries to allow full control over the development and operations in these companies.’

According to TeleGeography’s GlobalComms database, Comstar UTS has recently boosted its presence in Ukraine by buying up several smaller companies. In November 2006 it acquired Technological Systems and DG Tel for a total of USD4.7 million. DG Tel is a fixed line telco which delivers integrated corporate services, while Technological Systems is a broadband and dial-up ISP which holds one of the country’s eight licences for domestic and international long-distance IP voice services. Technological Systems aims to roll out a WiMAX network covering Ukraine’s largest business centres by the end of 2007.