ROSTELECOM BUYS 75% OF ARMENIAN OPERATOR GNC-ALFA FOR $22.5 MLN

Interfax
Feb 2 2012
Russia

Rostelecom has bought 75% of Armenia’s biggest independent network
services provider GNC-Alfa for $22.5 million, the Russian company said.

Rostelecom bought the shares via its subsidiary Teleset Networks Ltd.
A source familiar with the terms of the deal told Interfax that
Rostelecom had an option to buy the other 25% plus one share.

GNC-Alfa is Rostelecom’s first acquisition abroad. The company operates
more than 1,500 km of fiber-optic trunk network that covers 70%
of Armenia’s territory with connections to the Iranian and Georgian
networks.

GNC-Alfa plans to roll broadband Internet and digital TV out this year.

It had sales of $12 million and an EBITDA margin of 48% in 2011. Net
debt is less than $1 million.

Rostelecom signed a deal with GNC-Alfa in 2010 to market Rostelecom
-branded products in Armenia, including IP transit, Internet access
and communications channel lease.

Russia’s VimpelCom (RTS: VIMP) bought cellular and landline provider
Armentel in 2006 and Mobile TeleSystems (MTS) (RTS: MTSS) has owned
80% of K-Telecom since 2007.

From: Emil Lazarian | Ararat NewsPress