Comstar makes move for Synterra

30 Apr 2009

According to Russian newspaper Kommersant, Comstar United TeleSystems has made an offer to acquire long-distance operator Synterra in a deal worth USD850 million. Comstar plans to pay USD250 million in cash, along with about 11.1% of its shares to fund the acquisition. The Moscow-based telco will also take on Synterra’s outstanding debts as part of the deal, which stood at around USD332 million at the start of 2009. Synterra operates the second largest long-distance network in Russia and has WiMAX operations in Moscow, Kursk and Belgorod, with licences covering all towns with over 100,000 inhabitants. Mobile operator MegaFon is also reported to be interested in Synterra and is currently undergoing a process of due diligence on the firm. MegaFon director Sergey Soldatenkov told Kommersant, ‘Our strategic goal is to become a leader in broadband access by 2012.’