MTS and Comstar agree merger terms

The boards of directors of Russian mobile operator Mobile TeleSystems (MTS) and fixed-line triple-play provider Comstar-UTS have agreed terms for the acquisition of Comstar by MTS.

Comstar-UTS shareholders will receive 0.825 common shares in MTS for each Comstar share they own, representing a premium of 7.7% over average trading conversion ratio for the past three months. The deal is still subject to regulatory approval and the approval of Comstar’s shareholders. MTS currently owns a 61.97% stake in Comstar. The pair have said that the merger will allow the promotion and cross-selling of bundled packages and will produce synergies of US$200m (€162m).