Telekom Austria acquires remaining 30% Stake in SB Telecom (Austria,Belarus)
The Telekom Austria Group is buying 30% of SB Telecom, the sole owner of the Belarus based mobile network Velcom, for US$459.01 million. The deal is part of a put option agreed between the two companies when Telekom Austria brought its 70% stake in SB Telecom in October 2007.
Settlement will take place within 10 business days and the transaction will increase the Telekom Austria Group’s stake in Velcom to 100% .In addition, a US$339.39 million portion of the total performance based deferred consideration of US$431.60 million is payable on October 4, 2010 as predetermined performance criteria have been fulfilled. The next evaluation date for the settlement of the remaining US$89.74 million of the performance related deferred payment will take place in Q1 2011.
Final settlement of the performance related consideration is not to be expected before Q1 2012.
Velcom sold to Cypriot-based SB Telecom (Belarus)
Belarusian mobile operator Mobile Digital Communications (MDC), which offers services under the brand names Velcom and Privet, has become a ‘foreign private unitary enterprise’, after Cypriot-based SB Telecom acquired 100% control of the company on 22 August 2007. Until that date Velcom was a Belarus/Cypriot joint venture owned by the government of Belarus (30.9%), SB Telecom (49%), Beltechexport (20%) and national PTO Beltelecom (0.1%). Accoridng to e-Belarus, citing a report from Interfax, the state’s share in Velcom was valued at between USD300 million and USD500 million.
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