NLD network consolidation: Synterra buys Sistema’s stake in MTT

17 Mar 2009

Russian group Sistema, parent of cellco Mobile TeleSystems (MTS) and telco Comstar UTS, has agreed to sell its 43.5% equity stake in Russian national long-distance (NLD) operator Multiregional TransitTelecom (MTT) to fixed line and wireless broadband provider Synterra for USD54 million in cash. Synterra will also assume certain debts as part of the deal. Sistema indicated it was selling the stake, which represents 50% of voting shares, to concentrate on developing the long-distance services of Comstar, and thus reducing intra-group competition. Synterra already operates a 65,000km NLD network and also offers WiMAX-based wireless broadband access services.