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Comstar to sell Svyazinvest stake to Rostelecom

Russian service provider Comstar-UTS has struck a deal with telco Rostelecom whereby the former has agreed to sell its 25% stake plus one share in Svyazinvest to fixed-line market leading telco Rostelecom for over RUB26bn (€670m).

The deal is part of a complex ongoing series of transactions. Currently, Comstar owns 25% plus one ordinary share in Svyazinvest, the operator of a number of networks in Russia, and 69.93% in Moscow city network operator MGTS. Svyazinvest in turn owns 23.33% of MGTS and 38% of Rostelecom (or 50.67% of voting shares).

The deal between Comstar and Svyazinvest is subject to regulator approval and to the successful conclusion of a barter deal between Comstar’s parent company Sistema and Svyazinvest, through which the latter will take 100% control of wireless operator Sky Link while Sistema will acquire Svyazinvest’s stake in MGTS.