Mobile TeleSystems (MTS), the leading cellco in Russia by subscribers, has announced that it has acquired a 100% stake in Multiregion – a broadband and cable TV provider with a strong customer base in the Russian regions – from Cyprus-based Cavolo Trading Limited. The purchase price amounts to RUB3.67 billion (USD123.5 million). MTS will also assume debts totalling roughly RUB2.80 billion (USD94.4 million).
Multiregion is a group of broadband and cable TV providers with a presence in 37 Russian cities. The company’s current network coverage is around 1.8 million households, of which 1.3 million are fibre-to-the-building (FTTB) based. Multiregion has approximately 260,000 broadband subscribers, and 700,000 cable TV subscribers. Mikhail Shamolin, CEO of MTS commented: ‘The acquisition will significantly enhance our position in the rapidly growing broadband and cable TV markets in the Russian regions. MTS will be able to provide its customers with a broad, innovative and bundled offering of mobile and fixed line telephony, high speed broadband internet access and television services in over 110 cities in Russia’.