Russian operator MTT to acquire 60% stake in Synterra Media - report.
M2 EQUITYBITES-November 28, 2013-Russian operator MTT to acquire 60% stake in Synterra Media - report(C)2013 M2 COMMUNICATIONS http://www.m2.com
28 November 2013 - Russian trunk line operator Multiregional TransitTelecom, or MTT, has agreed to acquire a 60% interest in local media services provider Synterra Media for an undisclosed amount, Russian daily Kommersant reported quoting MTT's CEO Yevgeny Vasilyev.
Synterra Media, which distributes licensed content to regional TV channels and pay TV operators, is a subsidiary of telecom company Synterra. Russian mobile operator MegaFon (MOEX:MEGF) acquired Synterra in 2012 but in August this year it transferred 60% of Synterra Media to the former owner of the group, private equity firm Promsvyazcapital Group.
MTT will reportedly buy the 60% stake in Synterra Media from Synterra Cyprus Ltd, the newspaper further said Thursday citing a company representative. Promsvyazcapital declined to comment. Synterra Media is valued at USD23m (EUR17m), a source close to MTT told the paper, so 60% will make USD13.8m, according to Kommersant's estimates.
The remaining 40% interest in the target is owned by Media Connect, a unit of MTT, thus, the buyer will obtain full control over Synterra Media upon completion of the transaction.
The acquisition will help MTT strengthen its positions in the media services industry, Vasilyev said as cited by Kommersant. He added that the buyer plans to integrate Synterra Media into its Digitalprom division.
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