Svyazinvest stake sale approved

7 Sep 2009

According to a report by Russian daily Vedomosti, Russia’s economy ministry has approved the government purchase of Sistema’s holdings in fixed line group Svyazinvest and mobile operator SkyLink. The state will take on Sistema’s RUB26 billion (USD827.7 million) debt to Siberbank in order to acquire the conglomerate’s 25% plus one share stake in Svyazinvest and its 50% stake in SkyLink. The deal will also see Sistema’s fixed line subsidiary, Comstar UTS, take on a 23% stake in Moscow City Telephone Network (MGTS), owner of the capital’s fixed line network, bringing its total stake in the operator to 94.9%. Vedomosti reported, citing government officials, that the stake swap had been provisionally agreed last week and is now awaiting final approval from Deputy Prime Minister Sergei Ivanov.