MegaFon forming independent tower company

29 Oct 2021

Russian mobile operator MegaFon has revealed it is selling tower infrastructure assets and transferring them to an independent venture in partnership with established Russian tower firm Vertical, ComNews reported. MegaFon will receive a 25% stake in the joint venture, with Kismet Capital Group – Vertical’s controlling shareholder – taking a 65%-plus majority stake. The company will be created on the basis of the assets of MegaFon’s existing subsidiary First Tower Company (created in 2017) – including 17,000 towers plus supporting facilities, and more than 5,000 towers from Vertical. The transaction, planned for completion by end-2021, values First Tower Company at RUB94.2 billion (USD1.3 billion). MegaFon added that the new tower business will be a completely independent player as ‘the structure of the combined company assumes that neither MegaFon nor any other telecom operator will be able to gain control of the company or a majority in the board of directors.’

Russia, MegaFon