MegaFon announced the closing of the acquisition of 100% interest Skartel / Whit

Open Joint Stock Company "MegaFon" announced the closing of the acquisition of 100% interest in Maxiten Co Limited, which owns 100% shares of the Company "Skartel" Ltd. and "Iota", at Garsdale Services Investment Limited, the controlling shareholder of "MegaFon". In accordance with the decision adopted at the Extraordinary General Meeting of Shareholders of "MegaFon" September 12, 2013, the Company acquired a 100% interest in Maxiten, at the same time, the proportion of 99% was purchased directly from Garsdale and 1% - at Kable Global Inc., 100% subsidiary of Garsdale. The total acquisition cost "Skartel / Iota" of $ 1,180 million plus the assumption / guarantee "MegaFon" net debt "Skartel / Iota" on October 1, 2013. Payment for the shares in the amount of $ 1,180 million will be made ​​with a delay of payment as follows: 50% of the amount ($ 590 million) plus 6% per annum, accruing from the date of closing of the transaction until the date of actual payment will be paid after one year from the date of closing, the remaining amount of payment for the shares ($ 590 million) plus 6% interest per annum charged with the closing date of the transaction until the date of payment, to be paid within 2 years from the date of closing. Net Debt "Skartel / Iota" of $ 566 million (according to preliminary calculations) "MegaFon" accepts at face value. Correctness of the calculation of net debt "Skartel / Iota" on the closing date are subject to review "MegaFon" within 45 calendar days after the close of the transaction. In connection with this transaction the company "MegaFon" has entered into intra-revolving loan agreement with "Skartel / Iota" means by which will be used to repay existing debt to third parties, as well as to finance the development of the "Skartel / Iota." "MegaFon" believes that the acquisition "Skartel / Iota" provide leadership "MegaFon" on the market of providing 4G / LTE in Russia.