December 7, 2012 / 7:26 AM / 5 years ago

MegaFon completes $1.1 bln deal for Euroset stake

MOSCOW, Dec 7 (Reuters) - 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.

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