Sistema approves Comstar-MTS deal

6 Aug 2009

According to Reuters, the board of Russian conglomerate Sistema AFK has approved the takeover of its Moscow-based fixed line carrier Comstar United TeleSystems by Mobile TeleSystems (MTS), also a subsidiary of Sistema. As reported by CommsUpdate on 31 July, MTS agreed to pay USD1.28 billion for a controlling stake in Comstar. Sistema’s chief executive, Leonid Melamed, said: ‘The deal will allow us to strengthen our leadership position in the Russian telecoms sector and realise the synergies in both companies.’ MTS received approval for the deal from Russia’s antimonopoly authority on 19 June, but the transaction remains contingent on MTS obtaining the required funding.