Sistema increased SkyLink stake to 100% for USD168.5m

17 Sep 2010

In an intermediate transaction leading up to the transfer of 100% of shares in Russian cellco SkyLink to domestic group Svyazinvest, oil-to-telecoms conglomerate Sistema disclosed in its second-quarter financial report that it spent USD168.5 million raising its effective stake in SkyLink to 100%. However, under a wider share swap deal agreed by Svyazinvest, Comstar and Sistema in November 2009 (approved by competition authorities in February 2010), the shareholders of Sistema subsequently approved the transfer of 100% of SkyLink’s shares to Svyazinvest in August 2010. The Sistema report said that in April 2010 it increased its effective stake in SkyLink from 50.0% to 100.0% following a number of transactions (with 50% held directly and 50% by other group affiliate[s]). The soon-to-be jettisoned cellco remains an ‘affiliate’ of Sistema until the finalisation of its transfer to the Svyazinvest group, involving the execution of ‘a number of pending conditions,’ according to an August 2010 press release which followed shareholder approval.

Russia, Sistema, SkyLink, Svyazinvest