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Russian tycoon Usmanov buys stake in Megafon-paper

Reuters - Monday, May 12

MOSCOW, May 12 - Russian billionaire Alisher Usmanov has bought control over 39.3 percent of shares in Megafon, the country's third largest mobile phone operator, the Vedomosti business daily reported on Monday.

The daily quoted an unidentified source as saying that Usmanov had bought 8 percent of Megafon from Bermuda-registered fund IPOC and 58.9 percent of holding company Telekominvest, which owned 31.3 percent of Megafon, from Luxembourg-registered First National Holding .

Telekominvest was founded in the mid-1990s by current Telecoms Minister Leonid Reiman. Reiman denies being a beneficial owner. Both IPOC and FNH are owned by Jeffrey Galmond, one of Reiman's former associates.

Vedomosti said Usmanov and Galmond reached an agreement to proceed with the deal last year and signed the documents on May 7. Other large shareholders in Megafon are Sweden's TeliaSonera AB and private equity vehicle Alfa Group.

Megafon reported a 70 percent increase in net profit to $1.38 billion in 2007, while revenue rose by 53 percent to $5,72 billion.

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