Business Wire (press release), CA
Oct 27 2006
Comstar-UTS Announces Acquisition of Armenian Telecommunications
Group CallNet/Cornet
MOSCOW–(BUSINESS WIRE)–JSC `COMSTAR – United TeleSystems’ (`Comstar
UTS’, LSE: CMST), the leading provider of integrated
telecommunication services in Russia and the CIS, today announced
that it has acquired majority shareholding in CallNet and its 100%
owned subsidiary Cornet (together the `Group’) in the Republic of
Armenia. Comstar has purchased 75% of the shares plus one share with
an option to acquire the remaining stake in the Group. The companies
together comprise the second largest alternative telecommunications
group in the Republic of Armenia: Callnet is a transit operator and
Cornet is an Internet Services Provider.
CallNet is one of the four telecom operators in the Republic of
Armenia, which have a license to provide transit of international
traffic across Armenia, a strong competitive advantage due to high
volume of incoming international voice traffic in Armenia. Cornet has
a fast growing customer base, including 76% of the banking sector in
Armenia. In 2005 the consolidated revenues of the Group doubled year-
on -year to US $4.3 million.
Eric Franke, CEO and President of Comstar – United TeleSystems,
commented: «Both companies have leading positions in the fast growing
telecom segments in the Republic of Armenia – data transmission and
Internet access- the same business model that Comstar has in Russia.
Cornet is a sole provider of WiMax services in Armenia, and we will
use their expertise in the deployment of WiMax services in Russia.
This acquisition clearly provides us with additional synergies within
Comstar-UTS Group».
The purchase of CallNet and Cornet is the second transaction by
Comstar UTS in the CIS, and it follows on the JV agreement signed in
June of 2006 to establish the subsidiary Comstar – Ukraine with the
local partner OOO Neotel.
`This is the first transaction in a pipeline of new acquisitions
which we announced in October 2006 to make use of IPO proceeds in
order to implement our investment program in the regions’, –
continued Eric Franke.
Comstar UTS is a leading provider of integrated communications
services in Moscow and the Moscow region in terms of revenues and
subscribers and also offers communications services in other regions
of Russia and the Commonwealth of Independent States. Comstar UTS had
3.6 million subscribers in its traditional segment of the business,
479.2 thousand subscribers in its alternative segment in Moscow and
91.1 thousand subscriber in its alternative segment in the regions at
June 30, 2006. Comstar UTS offers voice, data and Internet, pay-TV
and various value-added services to corporate, operator and
residential subscribers, using its alternative and traditional
fixed-line networks. Comstar UTS had consolidated operating revenues
of US$ 286.6 million for the second quarter of 2006 and Comstar UTS’
consolidated assets totalled US$ 2.7 billion at June 30, 2006.
Comstar UTS ordinary shares are listed on the Moscow Stock Exchange
and on the London Stock Exchange under the symbol `CMST’.
Some of the information in this press release may contain projections
or other forward-looking statements regarding future events or the
future financial performance of Comstar UTS. You can identify forward
looking statements by terms such as `expect,’ `believe,’
`anticipate,’ `estimate,’ `intend,’ `will,’ `could,’ `may’ or
`might’, the negative of such terms or other similar expressions.
Comstar UTS wishes to caution you that these statements are only
predictions and that actual events or results may differ materially.
Comstar UTS does not intend to update these statements to reflect
events and circumstances occurring after the date hereof or to
reflect the occurrence of unanticipated events. Many factors could
cause the actual results to differ materially from those contained in
projections or forward-looking statements of Comstar UTS, including,
among others, general economic conditions, the competitive
environment, risks associated with operating in Russia, rapid
technological and market change in the industries Comstar UTS
operates in, as well as many other risks specifically related to
Comstar UTS and its operations.
Comstar UTS
Masha Eliseeva, +7 495 950 02 27
Mobile +7 495 997 08 52
ir@comstar-uts.ru
or
Shared Value Limited
Larisa Kogut-Millings, +44 (0) 20 7321 5037
comstar@sharedvalue.net
From: Emil Lazarian | Ararat NewsPress