MegaFon to acquire 4G operator Yota

8 Aug 2013

Russian mobile operator MegaFon has announced its intention to buy domestic 4G provider Scartel, which trades under the name Yota, from MegaFon shareholder Garsdale. Garsdale, a holding company which is itself controlled by Alisher Usmanov’s AF Telecom unit, owns 50% plus 100 shares of MegaFon and is outright owner of Scartel. MegaFon shareholders will vote on the planned acquisition at an extraordinary general meeting on 12 September, with 25.2% owner TeliaSonera already stating that it intends to vote in favour of the deal. The Swedish group says the move would bring ‘significant’ cost synergies for MegaFon and will strengthen the operator’s position in the Russian mobile data sector. Yota currently claims some 600,000 4G subscribers on its Long Term Evolution (LTE) network which operates in the 2.6GHz band.

Russia, MegaFon, Scartel (Yota), Telia Company