Metromedia to Sell Telecom Assets in Georgia

MOSCOW, Oct 2 (Prime-Tass) -- The USA' Metromedia International Group has reached a preliminary agreement with a consortium of companies to sell its telecommunications assets in Georgia for US$480 million, Metromedia said in a press release Monday.

Metromedia owns a 50.1% stake in Georgian mobile operator Magticom, a 21% stake in long-distance operator Telecom Georgia and a 26% stake in Internet provider Telenet, Metromedia said.

The consortium includes investment companies Istithmar and Salford Capital Partners, and commercial bank Emergent Telecom Ventures, Metromedia said adding that the deal was expected to be closed in late December.

The Georgian mobile market, which has penetration of about 30%, is split between two operators, Geocell and Magticom. In July, Russia?s second largest mobile operator VimpelCom bought a 51% stake in Mobitel, which held a mobile services license but did not have a network.

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Posted to the site on 2nd October 2006