MegaFon, AKADO deal hits snag

4 Oct 2011

According to BroadbandTVNews, the sale of Russian cableco AKADO Telecom to mobile operator MegaFon appears to have hit a stumbling block, with the cellco’s board of director failing to grant their approval of the deal; a definitive vote on the transaction is now expected to take place within the next few days. If approved, the deal would make MegaFon the leading provider of broadband services in Moscow. It follows the mobile operator’s acquisition of 100% of Moscow-based internet service provider (ISP) NetByNet for USD270 million in June 2011; the earlier deal effectively paved the way for MegaFon’s long-coveted entrance into the lucrative Moscow broadband market. As previously reported by TeleGeography’s CommsUpdate, MegaFon participated in negotiations with AKADO in June, with the asking price set at USD1.2 billion – almost double the amount Svyazinvest agreed to pay for the cableco in August 2010, prior to that deal’s collapse. AKADO Telecom is a broadband/wireline provider with a network presence in all of Moscow’s administrative districts, as well as the nearby areas of Zelenograd, Solnechnogorsk and Ivanteevka. At end-2010 AKADO Telecom reported 618,900 broadband subscribers and 511,700 cable TV customers; no fixed line subscriber figures are available.

Russia, AKADO Telecom, MegaFon