Russia's MegaFon files for approval to buy SMARTS

Tue Sep 30, 2008 8:55am EDT
 
[-] Text [+]

MOSCOW, Sept 30 (Reuters) - Russia's third-largest mobile phone operator, MegaFon, has applied for regulatory approval to buy regional cellular operator SMARTS, the state anti-monopoly agency said on Tuesday.

The Federal Anti-Monopoly Service (FAS) said on its Web site that MegaFon filed a petition on Sept. 5 to acquire 100 percent of SMARTS' voting shares.

FAS said it was still considering the request and invited comment from interested parties.

MegaFon, which is part-owned by Nordic telecom operator TeliaSonera (TLSN.ST), expressed interest in acquiring SMARTS in June this year, as did rival MTS (MBT.N) which filed for anti-monopoly permission to buy the operator on July 15.

SMARTS operates in the Volga region in central Russia and is the country's seventh-largest cellphone operator by subscriber numbers with 3.51 million clients as of Aug. 31.

The operator is majority owned by private investors -- businessman Gennadi Kiryushin and members of his family, and businessman Boris Skvortsov.

SMARTS shareholders have been seeking to sell the company for years. In December, the media reported that Russia's second-largest carrier Vimpelcom (VIP.N), in which Norway's Telenor (TEL.OL) has a large stake, offered $750 million for SMARTS, which both companies denied.

MTS, which is Russia's largest mobile phone operator, has reportedly offered $1 billion for 97 percent of SMARTS' shares, which none of the parties have ever confirmed. (Reporting by Maria Kiselyova; Editing by Hans Peters)

 
 

Featured Broker sponsored link

Editor's Choice

A selection of our best photos from the past 24 hours.  Slideshow 

Most Popular on Reuters

  • Articles
  • Video