SwedenÔÇÖs biggest telecoms company, TeliSonera, and RussiaÔÇÖs Altimo have agreed to combine their stakes in MegaFon and Turkcell to form a new company. ┬á┬á
By doing so, the two firms are hoping to create a leading international operator, with more than 90 million subscribers in Russia, Turkey and the CIS. There are already plans in place for expansion into new emerging markets.
When established, the new company will own a majority of shares in both Istanbul-based mobile operator Turkcell and MegaFon, the third largest mobile phone operator in Russia. FranceÔÇÖs AF Telecom, the third major shareholder in MegaFon, has also been invited to join the partnership.
The new company will be listed on the New York Stock Exchange and be established in a western jurisdiction. Turkcell and MegaFon will continue to be managed as separate operations
Oil-to-telecoms Moscow-based Alfa Group, which owns Altimo, holds 25.1 per cent of the shares in MegaFon, as well as 4.99 per cent of Turkcell.
Stockholm-based TeliaSonera owns 43.8 percent of Megafon and 37.3 percent of Turkcell.
Commenting on the deal, Alexei Reznikovich, CEO of Altimo, said: ÔÇ£Our companies are natural partners whose stakes in Megafon and Turkcell create control when combined together. This is a good basis for finding mutual business understanding and establishing a new global leader in mobile telecoms.
ÔÇ£The benefits of the deal are evident. We aim at creating a leading and one of the most dynamic players in the emerging markets with huge potential for further expansion.
ÔÇ£The new operator will possess broader possibilities for business development and expansion into other emerging markets bringing high quality services for subscribers and more value for all shareholders.ÔÇØ
Lars Nyberg, president and CEO of TeliaSonera, added: ÔÇ£The shareholder structure and control of Turkcell and Megafon will improve, as well as the liquidity of these assets.ÔÇØ
The news follows a deal between Norway's Telenor and Alfa Group in October, when the two firms agreed to merge their Russian and Ukrainian holdings to form a new company incorporated in Bermuda and listed on the New York Stock Exchange.
Altimo specialises in telecoms investments in Russia, the CIS and Asia. Together, its investee companies have more than 160 million mobile phone subscribers.
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