"MegaFon" concludes a major contract with the Chinese Huawei

"MegaFon" concludes a major contract with the Chinese Huawei

    "MegaFon" has completed a tender for the supply of telecommunications equipment, during which selected several partners, including the company Huawei. The contract between the "Megaphone" and Huawei signed for 7 years. This new approach to the Russian telecommunications market. The contract is worth tens of billions of rubles, reported in the Russian cellular operator. Treaty provides for the supply of equipment for the construction and modernization of networks 2G/3G/LTE, as well as the provision of software and maintenance. Chinese equipment companies already widely used in "MegaFon". "Tender for equipment suppliers, conducted" MegaFon ", fully meet international standards of transparency and efficiency." MegaFon "evaluates proposals suppliers not on the purchase price, but based on total cost of ownership equipment and software for the lifetime use (principle TCO - Total Cost of Ownership). Such an approach successfully optimize capital expenditures for the acquisition of equipment and software, and significantly reduce operating costs for repairs and maintenance "- the company said. Today in "MegaFon" reported on the supplementary agreement, involving early payment in the amount of 1,060 million U.S. dollars in the transaction to acquire 100% stake in Maxiten Co Limited («Maxiten»), which owns 100% of the company "Skartel" ("Skartel / Yota »), the holding Garsdale Services Investment Limited (« Garsdale »). According to the decision of the extraordinary general shareholders meeting June 5, 2014, "MegaFon" concluded an additional agreement with Garsdale. It allows you to pay in advance ~ 90% of the total value of the transaction, which is the largest commitment by denominated in U.S. dollars. "Thanks to the excellent operating results and successful ruble bond issue" MegaFon "has amassed a large amount of cash.In this regard, the shareholders decided to take early payment transaction "Skartel / Yota». This will significantly reduce the amount of liabilities in U.S. dollars and reduce the impact of changes in the foreign exchange market "MegaFon", "- said General Director of" Megaphone "Ivan Tavrin. "MegaFon" has acquired 100% stake in Maxiten October 1, 2013 g for 1,180 million dollars which was supposed to pay in two equal installments on the first and second anniversary of the Closing Date (October 1, 2014 and October 1, 2015, respectively), plus interest at the rate of 6%, calculated from the date of closing on the date of payment. Pursuant to the requirements legislation shareholders, affiliated with Garsdale, including the CEO of "Megaphone", did not participate in the vote.