MTS buys Vivacell for EUR 310 mln (Russia)Russian mobile operator Mobile TeleSystems (MTS) has agreed to buy 80 percent in International Cell Holding, which owns Armenia’s K-Telecom, for EUR 310 million. Of the total purchase amount, EUR 50 million will be paid out to the sellers in the course of three years from 2008 to 2010 provided certain agreed financial targets are met by K-Telecom. At the same time, MTS will extend a EUR 140 million technical loan to the company to refinance existing loan facilities and for further investments. K-Telecom operates under the Vivacell brand. Vivacell had 986,000 subscribers on 1 July, holding a 66 percent share of the market. The company holds a GSM licence which is valid until the end of 2019. MTS also has an option to buy the remaining 20 percent International Cell Holding until 2012.
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