Metromedia International Group Agrees To Sell Its Stake in Latvian Mobile Operator, Baltkom GSM
NEW YORK--(BUSINESS WIRE)--Oct. 3, 2000--Metromedia International Group, Inc. (AMEX:MMG - news), which through Metromedia International Telecommunications Inc. (MITI) is the owner of various interests in communications joint ventures in Eastern Europe, the former Soviet Union and other emerging markets, today announced that agreement has been reached by MITI and the other shareholders of Baltkom GSM, a mobile operator based in Riga, Latvia, for the sale of Baltkom GSM to Tele2 AB for total consideration, including the repayment of debt to Baltkom's shareholders, of approximately $277 million.
MITI has an indirect 22% equity interest in Baltkom GSM and its share of the sale proceeds will be approximately $65 million, including the repayment of approximately $16 million of loans and management fees due from Baltkom.
Baltkom GSM is the second largest provider of GSM cellular services in Latvia with 90,000 subscribers. Tele2 AB is a subsidiary of Netcom AB of Sweden (NASDAQ: NECSB; Stockholm: NCOMA, NCOMB), a leading alternative pan-European telecommunications company offering fixed and mobile telephony, data network and Internet services in 18 countries. The other selling shareholders are Western Wireless International Corporation, a subsidiary of Western Wireless Corporation (NASDAQ: WWCA - news), the European Bank for Reconstruction and Development, and local Latvian shareholders.
Stuart Subotnick, the President and CEO of Metromedia International Group, said, ``We are extremely pleased to announce the sale of our minority interest in Baltkom GSM at a substantial profit. Completion of this transaction will greatly facilitate our ability to capitalize on a number of other opportunities we are considering.''
Completion of the transaction is conditioned, inter alia, upon receipt of approval of the acquisition of Baltkom GSM from the Ministry of Transport of the Republic of Latvia, which is expected to be received shortly. |
