Golden Telecom Inc. (GLDN:US), a Nasdaq-listed provider of Internet, voice and data services in the former Soviet Union, agreed to buy a controlling stake in alternative service provider Corbina Telecom Group to expand its business.
Golden Telecom will pay $10 million in cash and 8 percent of its shares for 51 percent of ZAO Cortec and its subsidiaries that jointly operate as the Corbina Telecom Group, Moscow-based Golden Telecom said in an e-mailed statement today.
Cortec is owned by Alexander Mamut and billionaire Viktor Vekselberg's Renova Capital. Corbina operates in Moscow and 24 regions of Russia providing broadband Internet services and voice and data services to small and medium enterprises. It forecasts sales of $90 million this year.
The deal gives Golden Telecom access to virtually every building in Moscow, Chief Executive Officer Jean-Pierre Vandromme said in the statement. ``This acquisition supports our strategy to develop broadband services for mass markets and significantly strengthens our position in Moscow, St. Petersburg and several other large cities of Central Russia,'' he said.
The transaction is subject to approval by the appropriate regulatory bodies in the U.S. and Russia, the company said.
Corbina will sell shares in an initial public offering in Moscow, London and New York by the end of 2008, according to the statement.
Golden Telecom serves corporations, operators and consumers in Russia, Ukraine, Kazakhstan and Uzbekistan via leased channels and intercity fiber-optic and satellite-based networks.
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