Megafon and Kismet Capital Group have agreed to create a new and leading independent tower company in Russia.
According to Tass, it will be formed on the basis of the assets of the First Tower Company, consisting of 17,000 towers and supporting structures, and Vertical’s 5,000+ structures.
As part of the transaction, the First Tower Company has been valued at R94.2 billion (€1.17 billion) and Megafon will receive a 25% stake in the new company.
The deal is expected to close at the end of this year. It will also be be financed by Kismet Capital Group’s own funds, as well as Sberbank.
As a result of the transaction, Kismet will become the majority shareholder of the combined company, have five of seven representatives on the combined company’s board of directors and be responsible for the operational management of the business.