Reuters 10 September 2012
Mobile phone operator MegaFon , which is preparing a London flotation, on Friday approved a plan to buy a half stake in Russia’s biggest cellphone retailer, a source familiar with the situation said.
The deal for 50 percent of Euroset, which could be worth $1.25-1.35 billion according to media reports, could significantly expand MegaFon’s ability to distribute its services, analysts said.
Euroset, in which MegaFon’s rival Vimpelcom will have the remaining 50 percent stake, has 5,500 stores in Russia and Belarus. MegaFon currently runs 1,750 of its own stores and 2,000 franchisee shops, according to VTB analysts.
Russia’s Vedomosti reported that MegaFon and vehicles of its controlling shareholder Alisher Usmanov will buy a stake of 50 percent of Euroset from businessman Alexander Mamut who has been looking to sell it since last December.