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. Last Updated: 07/27/2016

Golden Finalizes Sovintel Takeover

Internet and telecoms company Golden Telecom said Thursday it had finalized its purchase of half of Moscow carrier Sovintel, a deal that should double its revenues year on year.

Golden is paying long-distance carrier Rostelecom $100.2 million in cash and stock for the 50 percent stake in Sovintel.

Golden already owns the other 50 percent and will be able to fully consolidate the profitable carrier next quarter.

"Golden Telecom and Sovintel will have combined revenues of more than $280 million and combined EBITDA of approximately $90 million for 2002," Golden chief financial officer David Stewart said in a company statement.

Golden Telecom had revenues of $140 million in 2001 and EBITDA (earnings before interest, taxes, depreciation and amortization) of $27.4 million.

Rostelecom, Russia's national long distance carrier, will receive $56 million in cash and 15 percent of Golden Telecom's common stock, as well as representation on Golden's board.