MegaFon, controlled by Russia's richest man Alisher Usmanov, announced plans in October to buy half of Euroset, pitting it against rival Vimpelcom which owns the remainder of the asset. MegaFon competes against Russia's biggest operator MTS as well as No 3 Vimpelcom. Under the deal, Lefbord Investments - owned equally by MegaFon and Usmanov's Garsdale vehicle - has bought 50 percent of Euroset for $1.07 billion. It will pay an additional $100 million if Euroset meets certain targets.
After one year, MegaFon will buy Garsdale's stake in Lefbord, gaining full control over 50 percent of Euroset, MegaFon said on Friday. MegaFon previously said the deal could cost it up to $1.33 billion, which includes other costs such as interest payments.
MegaFon and Garsdale are buying the stake from tycoon Alexander Mamut, who has been looking to sell his holdings since last December. Mamut also holds a stake in Russian miner Polymetal.