Yerevan, September 14 /Mediamax/. Russian MTS Company became the owner of 80% of shares of the Armenian VivaCell mobile operator.

Mediamax reports that the President of MTS Leonid Melamed, General Director of Vivacell Ralph Yirikian and the President of the Lebanese Investment Company Fattouche Group Pier Fattouche announced this at a news conference in Yerevan today.

The MTS purchased 80% of the authorized capital stock of International Cell Holding Ltd. Company, which is the 100% indirect owner of “K-Telecom” CJSC, which is presented by VivaCell brand, as well as concluded an option agreement for the purchase of the remaining 20% of the shares.

Mediamax reports that the sum of the deal makes 310mln euro, including 50 euro, which will be paid to the owner in the course of 3 years - from 2008 up to 2010, provided certain agreed financial targets are met by K-Telecom.

MTS will also provide “K-Telecom” a loan at the sum of 140mln euro to refinance existing loan facilities and for further investments.

The option agreement for purchase and sale of the remaining 20% of the shares of “K-Telecom” comes into force not earlier than July 2010 and lasts till 2012. The price of the package will be established based on the assessment of the independent international bank.

Leonid Melamed stated that “the acquisition fully complies with our strategy to capture growth opportunities in the fast-growing CIS markets”.

“Management has built a solid business in a short period of time, as well as establish foundations to future growth of K-Telecom, and we are pleased to enter this partnership”, Leonid Melamed stated.

According to the assessment of MTS, as of July 1 of 2007, the number of VivaCell subscribers stood at 986.000, and the market share - 66%.