MOSCOW—A shareholder of the fourth-biggest Russian carrier Kuban GSM in the Krasnodar region in the south of the country has decided to sell its interest in the operator, and top national carrier Mobile TeleSystems (MTS) is the likely buyer.
The directors of Kubanelektrosvyaz, which holds a 24-percent stake in Kuban GSM, passed the final decision on the sale in January. Although so far the buyer has not been officially announced, wireless market experts name MTS, as it has held talks on the purchase of late. The deal is expected to be completed in the first quarter of 2002.
The cost of Kuban GSM is estimated at some US$150 million, so the 24-percent stake is likely to cost US$35 million.
However, MTS reportedly eyes a bigger interest in Kuban GSM, and Leonid Mayevsky, chairman of the parliamentary subcommittee on communications, claimed late last year that MTS had already secured the purchase of a controlling stake in the carrier. Other Kuban GSM shareholders comprise Kubtelecom (54 percent), private individuals (20 percent) and Sochitelecom (2 percent), and so far, it is unknown who might also sell stock.
The carrier so far has refused comment.
The purchase of Kuban GSM is the only way for MTS to enter the Krasnodar market, where GSM licenses are owned by the pan-Russian Megafon project of St. Petersburg-based Telecominvest and Vimpelcom (BeeLine). In its turn, Kuban GSM has been looking for a partner after Megafon launched its network in the region last year.
