Consolidation in Russia’s cable industry is gathering momentum, with MTS set to buy Multiregion within the next two weeks.
Kommersant reports that the deal will be worth $100 million (€79.1 million), with MTS also taking on debts of $120 million. This will make it comparable in EV/EBITDA terms to such deals as Kabel Deutschland’s acquisition of Orion Cable.
MTS has a 62% stake in Comstar-UTS and by buying Multiregion will significantly strengthen its position in Russia’s cable market. Multiregion, which operates under the brand name Multineks, will add 37 cities to the 80 already served by Comstar-UTS, with the only ‘overlap’ being in six.
It also has 700,000 pay-TV subscribers, and once added to the 1.8 million claimed by Comstar-Region’s will raise the latter’s share of the Russian pay-TV market to some 16%. Comstar and Multiregion will in addition account for 7% of the Russian regional broadband market.
Multiregion was formed in 2004 and is currently believed to be owned by PromSvyazCapital and Sergey Dmitriev.
