Sistema-Svyazinvest deal approved

16 Sep 2009

Russia’s communications minister Igor Shchyogolev has announced that the proposed government purchase of Sistema’s holdings in fixed line group Svyazinvest and mobile operator SkyLink has received final approval from the Prime Minister’s office. Under the terms of the deal, 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 28% stake in Moscow City Telephone Network (MGTS), owner of the capital’s fixed line network. Shchyogolev said: ‘The deal has been approved. Conditions should satisfy both parties.’