PRESS: MTS IN TALKS TO BUY ARMENIAN CELL COMPANY K-TELECOM
Prime-Tass English-language Business Newswire
August 21, 2007 Tuesday 1:24 PM EET
Russia
Russia’s number one wireless carrier Mobile TeleSystems (MTS) is
in talks to acquire Armenian cellular company K-Telecom, Alexander
Goncharuk, president of MTS’ parent company AFK Sistema said, business
daily Vedomosti reported Tuesday.
Goncharuk said due diligence was under way and that he did not know
when the acquisition might be closed, Vedomosti reported.
With over 1 million users, K-Telecom is the bigger of Armenia’s two
wireless carriers. The other one, Armentel, was sold last year to
Russia’s second biggest cellular operator VimpelCom, which outbid
MTS in a tender.
K-Telecom, whose majority shareholder is Lebanese investment firm
Fattouch Group, refused to comment on whether it is negotiating
with MTS.
K-Telecom may be worth between U.S. $420 million and $600 million,
according to two analysts surveyed by Vedomosti.
Penetration of wireless services in Armenia is 50% according to
official data but may be as low as 35%, Yevgeny Golosnoi, an analyst
with Troika Dialog, told the daily.