BELARUS NEWS AND ANALYSIS

DATE:

03/10/2007

Telekom Austria to buy 70% of MDC for $1b

(MENAFN) The Chief Executive Officer at Austria Telekom AG announced that the company has agreed to acquire a 70 percent majority stake in Belarusian Mobile Digital Communication (MDC) for $1.03 billion, AP reported.

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

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

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

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

Source:

http://www.menafn.com/qn_news_story_s.asp?StoryId=1093168792