Russia-based telecommunications operator MegaFon announced that it would be acquiring Scartel. The deal, worth USD 1.2 billion, is expected to be completed this September after MegaFon obtained clearance from Russia's competition regulators to proceed with the purchase. The deal is expected to strengthen MegaFon's position in the broadband services industry, a fast-growing segment in the Russian telecommunications market. The phone operator already provides customers mobile broadband services through Scartel.
Scartel, which also goes by the trademark name Yota, would be purchased by MegaFon from Garsdale Services Investment Ltd. Garsdale Services is the holding firm of Alisher Usmanov, the richest man in Russia. He also holds a controlling stake in MegaFon which will be deferring payments into two tranches. The first half of the USD 1.2 billion price tag will be paid on the first anniversary of the signing of the deal. The remainder, meanwhile, will be given a year later.
Join the Conversation