MegaFon acquires fibre-optic operator Metrocom for RUB2 billion

11 Oct 2010

Russian mobile operator MegaFon has announced an agreement to acquire 100% of St Petersburg-based regional operator Metrocom, in a deal worth RUB2 billion (USD67 million). MegaFon will acquire a 55% stake from the government of St Petersburg, and a 45% stake from Russian company MCT, which is owned by the son of St Petersburg governor Sergei Matvienk. The stake in Metrocom was auctioned by the Russian state property fund; rival telcos Mobile TeleSystems (MTS) and Rostelecom ruled themselves out of the auction, citing the RUB2 billion starting price as prohibitively expensive. Metrocom owns a 1,500km fibre-optic network and is currently the only operator in St Petersburg with metro cables in place. Recent years have seen MegaFon boost its emergent status as a regional broadband provider with acquisitions of Synterra and its subsidiary PeterStar, which were finalised in July 2010.

Russia, MegaFon