Telekom Austria Buys 70% Stake in MDC

Wednesday, 3 Oct 2007 | 6:42 AM ET

The Austria Telekom group said Wednesday it has agreed to acquire a 70% majority stake in Belarusian Mobile Digital Communication, or MDC, for 730 million euros ($1.03 billion).

Austria Telekom will buy the stake through a 70% holding in the company's full owner, Cyprus-based SB Telecom, a statement said. The acquisition is subject to approval by the relevant antitrust authorities.

Austria Telekom also has an option to buy the outstanding 30% at a price of 320 million euros ($453.6 million) in the fourth quarter of 2010, according to the statement.

MDC has about 2.8 million customers, giving it a 42% share of the fast-growing Belarus mobile telecommunications market.

Boris Nemsic, CEO of Austria Telekom, appeared pleased by the acquisition.

"The acquisition of MDC is the consistent execution of our strategy for profitable growth in Eastern and Southeastern Europe," Nemsic said. "It offers us an entry to the attractive telecommunication market in Belarus while the terms of the transaction once again underline our disciplined approach to expansion."

Austria Telekom said it will finance the 70% stake in SB Telecom using existing credit facilities.

  Price   Change %Change


Contact Mobile


    Get the best of CNBC in your inbox

    › Learn More
  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.