Nizhny Novgorod, February 2005: on February 9, 2005 Volga Telecom pulled out of its last wireless NMT-450 subsidiary – Cellular Communication of Mordovia by selling 30,000 common shares, which constitute 60% of the cellular operator’s charter capital, to MS Direct Ltd.
This transaction was executed in line with the decision adopted by Volga Telecom’s BoD to exit from NMT-450 cellular operators by selling off its stakes in their charter capitals.
Earlier, Volga Telecom had already sold its holdings in four wireless NMT-450 providers: Udmurtia Cellular Networks 450 (100%), Vyatskaya Cellular Communication (51%), Sotel – Nizhny Novgorod (2-%) and Saratov Cellular Communication System (15%). In accordance with the operators’ charters, other shareholders or participants of these companies are vested with the preemptive right when stakes or participatory shares are put up for sale. Thus, MS-Direct Ltd., being the shareholder of these telecom entities and having placed the winning bid, exercised its preemptive right to acquire Volga Telecom’s shares in these entities.
On February 3, 2005 MS-Direct Ltd. obtained FAS approval to pick up shares of Cellular Network of Mordovia. Thus, on February 9, 2005 the final stage of the transaction (acquisition of 5 wireless NMT-450 subsidiaries) was completed. The transaction price is estimated at $7.2 mln.
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