BELARUS NEWS AND ANALYSIS

DATE:

03/10/2007

Telekom Austria Buys 70 Pct Stake in MDC

Telekom Austria Buys 70 Percent Stake in Belarus Mobile Operator MDC

VIENNA, Austria (AP) -- The Austria Telekom group said Wednesday it has agreed to acquire a 70 percent majority stake in Belarusian Mobile Digital Communication, or MDC, for euro730 million (US$1.03 billion).

Austria Telekom AG will buy the stake through a 70-percent holding in the company's full owner, Cyprus-based SB Telecom Ltd., a statement said. The acquisition is subject to approval by the relevant antitrust authorities.

Austria Telekom also has an option to buy the outstanding 30 percent at a price of euro320 million (US$453.6 million) in the fourth quarter of 2010, according to the statement.

MDC has about 2.8 million customers, giving it a 42-percent share of the fast-growing Belarus mobile telecommunications market.

Boris Nemsic, CEO of Austria Telekom, appeared pleased by the acquisition.

"The acquisition of MDC is the consistent execution of our strategy for profitable growth in Eastern and Southeastern Europe," Nemsic said. "It offers us an entry to the attractive telecommunication market in Belarus while the terms of the transaction once again underline our disciplined approach to expansion."

Austria Telekom said it will finance the 70 percent stake in SB Telecom using existing credit facilities.

Source:

http://biz.yahoo.com/ap/071003/austria_belarus_austria_telekom.html?.v=1