Russia’s Mobile TeleSystems (MTS) has acquired 100% of CJSC Multiregion, which is one of the leading groups of broadband and cable TV providers in the Russian regions, from Cavolo Trading Limited, Cyprus.
MTS paid $123.5 million for the company, and will also assume debt of around $94.4 million.
Multiregion has a presence in 37 cities of the Russian Federation, reaching around 1.8 million households of which 1.3 million are FTTB-based. It has approximately 700,000 cable TV subscribers and 260,000 broadband subscribers.
MTS is already the largest integrated telecommunications provider in Russia and the CIS, and with this latest acquisition it will further strengthen its position in the region. The company will make a “broad, innovative and bundled” offering of mobile and fixed line telephony, high-speed broadband internet access and TV services in over 110 cities in Russia.
Commenting on the news, MTS’ President and CEO, Mikhail Shamolin, said: “It [Multiregion acquisition] fits perfectly into our ‘3i’ strategy, as it allows us to expand our integrated service portfolio and to differentiate our products from the competition.”