MegaFon completes Yota buyout

3 Oct 2013

Russian wireless operator MegaFon has announced that it has completed its acquisition of 100% of Maxiten, a holding company which controls 4G operator Scartel/Yota, from MegaFon’s largest shareholder, Garsdale Services Investment. The total purchase price was USD1.18 billion, plus the assumption of debt which is estimated to be worth USD566 million. As part of the deal, MegaFon says it has entered into a revolving intra-group loan agreement with Yota. The proceeds of the loan facility will be used to pay off third-party loans and to finance Yota’s future development. The deal sees MegaFon gain access to 40MHz of continuous spectrum in the 2600MHz frequency band, while it also inherits Yota’s 648,000-strong Long Term Evolution (LTE) user base. Yota’s 4G network – comfortably the largest in Russia – currently covers 27% of the country’s population.

Russia, MegaFon, Scartel (Yota)