Russia's Federal Antimonopoly Service considered the application of OJSC MegaFon for the purchase of 100% of the voting shares in CJSC Smarts-Volgograd, the regulatory body informed.
After due consideration, subject to articles 28 and 33 of the Competition Law, the competition authority decided to grant this application.
The core business of CJSC Smarts-Volgograd (Volgograd) is the provision of telecommunication services including radiotelephony services, to legal entities and individuals.
OJSC MegaFon (tax number: 7812014560) established in 1993 as CJSC North-West GSM and renamed as OJSC MegaFon in 2002, is currently the second largest mobile operator in the Russian Federation providing services to more than 64 million subscribers. MegaFon's subsidiaries are operating in Tajikistan, Abkhazia and South Ossetia. MegaFon's shareholding structure is as follows: TeliaSonera (25.17%), AF Telecom (50% plus 1 share), MegaFon's subsidiary company MegaFon Investments (Cyprus) Limited (7.57%), MegaFon CEO I. Tavrin (2.5%).
MegaFon's authorized capital is RUB 62 million represented by 620 million shares at par value of 0.1 rubles.
IFRS net profit of OJSC MegaFon for 9 months 2013 increased by 61% year-on-year to RUB 41.526 billion. The operator's consolidated revenue grew by 8% from RUB 200.746 billion to RUB 217.497 million; in particular, revenue from mobile communication services increased by 7% to RUB 191.35 billion. Operating expenses were reduced to RUB 153.401 billion from RUB 154.604 billion. Operating profit increased by 39% to RUB 64.096 billion from RUB 46.142 billion.
According to the information and retrieval system DataCapital, RAS net profit of MegaFon for 9 months 2013 increased by 50.6% to RUB 45.191 billion from RUB 30.009 billion the year before. Revenue grew by 7.2% to RUB 201.5 billion from RUB 187.915 billion, sales profit by 27.1% to RUB 69.436 billion from RUB 54.616 billion, pre-tax profit by 49.3% to RUB 56.596 billion from RUB 37.908 billion.