According to Vedomosti, MegaFon, Russia’s second largest wireless operator in terms of subscribers, is poised to finalise its long-running USD1.2 billion acquisition of AKADO Telecom later this month; MegaFon’s board of directors are set to meet this week to green-light the takeover. Under the terms of the proposed deal, MegaFon will pay 70% of the sale price in cash, with the remaining 30% payable at a later date, with certain clauses triggered by AKADO’s future financial performance.
The deal between MegaFon and AKADO follows the former company’s acquisition of 100% of Moscow-based internet service provider (ISP) NetByNet for USD270 million last month. NetByNet is believed to be the fourth largest broadband provider in Moscow, and also has a presence in Belgorod, Voronezh, Kursk, Lipetsk and Orlov. The deal effectively paved the way for MegaFon’s long-coveted entrance into the lucrative Moscow broadband market. At end-2010 Moscow-based AKADO Telecom reported 618,900 broadband subscribers and 511,700 cable TV customers; no fixed line subscriber figures were made available.