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Golden Telecom Continues Consolidation of Regional Telecommunications Assets

24 января 2007
Golden Telecom announced that following its regional expansion strategy it has purchased the acquired two alternative operators in Yekaterinburg, Nizhny Novgorod, the fourth and the fifth largest cities in Russia, and Cheboksary, with a combined population of 3.0 million. The total purchase price consideration amounted to approximately $1.2 million. In Yekaterinburg, Golden Telecom purchased the telecommunications assets of Uralkhimmash and Les-Transit.

The telecommunications assets of Uralkhimmash are used to provide local fixed-line services on the Uralkhimmash plant premises and in the surrounding residential area.

Les-Transit is a residential Internet services provider. The company’s network, which is approximately 5.5 kilometers long, covers two residential districts in Yekaterinburg. Golden Telecom acquired a 100% interest in Vitus, a local fixed-line operator providing telecommunication services to Termal Plant and surrounding district in Nizhny Novgorod. Vitus operates its own cable distribution network. Golden Telecom also acquired a 100% interest in Informtechnology, a telecommunications operator in Cheboksary, Chuvashiya Republic of Russia, with a cable distribution network of approximately 40 kilometers.

Commenting on these deals, Jean-Pierre Vandromme, Golden Telecom’s Chief Executive Officer, noted: “These purchases and acquisitions support our regional expansion strategy and further emphasize Golden Telecom’s proactive approach to market consolidation. The resources of the acquired companies and the purchased assets enable us to enlarge our client base and to strengthen Golden Telecom’s position in the regions.”


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