×
Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

MegaFon Holders Approve Buying Into Yevroset

MegaFon's shareholders have given the green light to the mobile operator's plan to buy a stake in Yevroset, the cellphone retail chain in which VimpelCom already is a part-owner.

MegaFon will spend $590 million to snap up part of the Yevroset share currently held by Russian investor Alexander Mamut, Vedomosti reported Wednesday.

In the deal, MegaFon will get control over the stake by first purchasing 50 percent of Cypriot company Lefbord Investments Limited.

The other half of Lefbord will be acquired by MegaFon's majority shareholder, Garsdale Services Investment Limited. That firm holds 50 percent plus one share of MegaFon and is controlled by billionaire Alisher Usmanov, according to Vedomosti's company database.

Lefbord, for its part, will buy 50 percent of Euroset Holding N.V. from Mamut. Euroset Holding N.V. holds 100 percent in Yevroset.

Also, Vedomosti reported that MegaFon could exercise an option to buy out Garsdale's stake in Yevroset in three years.

It wasn't immediately clear from Vedomosti's article whether Mamut would own a Yevroset stake after the MegaFon deal. According to Vedomosti's database, Mamut held 50.1 percent of Yevroset, while VimpelCom held 49.9 percent.

MegaFon's vote on the sale occurred at an extraordinary shareholder meeting Tuesday.

Meanwhile, as MegaFon considers a listing on the London Stock Exchange, the Financial Times reported Sunday that Kcell, a Kazakh mobile operator, is planning to float about 25 percent of its equity in London.

Kcell's majority owner is TeliaSonera, which owns 35.6 percent of MegaFon, Vedomosti has reported.

Related articles:

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more