The boards of Russia’s MTS and Comstar have given the go ahead to the merger of the two companies. As a result, Comstar, which is already 61.97% owned by MTS (64.03% excluding treasury shares) will be subsumed into the latter and cease to exist as a separate legal entity.
Separately, Comstar (Comstar-UTS) has approved agreements signed with Rostelecom regarding the sale of its stake in Svyazinvest. Under them, Rostelecom will buy 17.31% of Svyazinvest for R18 billion (€470.2 million).
Comstar-UTS is a leading provider of pay-TV services in Russia, claiming 2 million subscribers at the end of the first quarter.