MOSCOW Dec 7 Russia's second largest mobile
operator MegaFon has completed a $1.07
billion deal to buy a stake in cellphone retailer Euroset, the
company said on Friday.
MegaFon, controlled by Russia's richest man
Alisher Usmanov, announced plans in October to buy half of
Euroset, expanding the number of shops through which it can sell
its services in Russia's highly competitive mobile market.
Under the deal, Lefbord Investments - owned equally by
MegaFon and Usmanov's Garsdale vehicle - has bought 50 percent
of Euroset for $1.07 billion. It will pay an additional $100
million if Euroset meets certain targets.
After one year, MegaFon will buy from Garsdale the remaining
50 percent of the shares owned by Lefbord and will gain control
over 50 percent of Euroset.
Vimpelcom holds the other 50 percent stake in
Euroset, which has 5,500 stores in Russia and Belarus.