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Comstar-UTS in move to reorganise assets

Russian service provider Comstar-UTS has signed a memorandum of understanding with Svyazinvest and Sistema that could see it increase its stake in Moscow network operator MGTS.

Comstar currently owns 25% plus one share in Svyazinvest, which in turn owns 23.33% of MGTS (in which Comstar directly holds a 55.73% stake). Under the terms of a memorandum of understanding between the pair and Comstar’s ultimate owner Sistema, Comstar could sell its stake in Svyazinvest and acquire the shares in MGTS. The memorandum also allows for a separate debt restructuring of the companies involved. The exact date of any transaction will be subject to further discussion.