Advised ZAO Sistema Telecom on the acquisition of a controlling stake in WaveCrest Group Enterprises Limited
2006
Transaction Summary
Advised ZAO Sistema Telecom (RTS: AFKS) on the acquisition of a controlling stake in WaveCrest Group Enterprises Limited, a global provider of long-distance telecommunications services.
Transaction Highlights
- Strata advised Sistema Telecom, the London and Moscow listed largest private sector consumer services business in Russia and the CIS, on its acquisition of a 66% stake in WaveCrest Group Enterprises Ltd for a total cash consideration of c.US$ 40 million
- The acquisition of a controlling stake in WaveCrest was Sistema’s largest telecoms investment to date
- Transaction announced in March 2006 and closed, following regulatory approval, in October 2006
- Over and above the execution of the actual transaction, Strata’s strategic advice with respect to the acquisition was a key part of the service provided to the client
Company Profile
- WaveCrest is a global provider of long-distance telecommunications services to international carriers and residential customers in the UK, Republic of Ireland and Scandinavia, pioneering the use of VoIP technology for international voice traffic
- WaveCrest carried more than 300 million minutes of voice traffic per month and has an established switching presence in cities across Europe. It generated revenues of c. US$ 280 million in 2005