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. Last Updated: 07/27/2016

Providers See Ownership Switch

Combining the resources of two of its Internet providers, AFK Sistema has orchestrated a deal in which MTU-Intel takes full ownership of PTT-Teleport Moscow.

MTU-Intel acquires 51 percent of PTT-Teleport from Sistema-controlled Moscow City Telephone Network, or MGTS, and 49 percent from Sistema itself. In the process, PTT relinquishes control over Tochka.Ru, a joint project with MGTS that provides digital lines for homes and businesses. Sistema said no money was involved in the deal.

"PTT-Teleport keeps its legal name and independence, though transfers all of its Internet business to MTU-Intel, maintaining for itself only local telephone services and a fiber-optic network," Reuters reported MTU-Intel director Nikolai Repin as saying Tuesday.

MTU's ownership structure also gets an overhaul. Before, the Internet provider was 25 percent owned by MTU-Inform, an alternative fixed-line operator also controlled by Sistema, and a group of individuals believed linked to Sistema. News agencies reported company officials as saying Tuesday that 38 percent of MTU-Intel now belongs to both MTU-Inform and MGTS, while Sistema gets the rest.

However, a source familiar with the deal said Sistema now has a 24.5 percent direct stake in MTU-Intel, with Mont-com -- 77 percent owned by Sistema Telecom -- owning 37.5 percent. MGTS owns 25.5 percent and MTU-Inform has 12.5 percent.