Metromedia to Buy Controlling Shares of Georgian Telecom

The U.S. company Metromedia International Group, Inc. will take over 51% of the shares of Georgian Telecom for USD 5 million, Economy Minister Lexo Alexishvili said on February 2.

?The deal is expected to be officially finalized within the next two weeks,? Lexo Alexishvili told Civil Georgia.

Currently 51% of the shares in the Telecom is owned by the Georgian government. Metromedia already owns 30% of Georgian Telecom shares; hence after the finalization of this deal it will control 81% of company?s shares. The remaining 19% is owned by the Bulcom-C Ltd. a Cyprus-based investment company.

?We were holding talks with a number of potential investors, but none of them offered more than USD 5 million,? the Economy Minister said, adding that Metromedia was given to certain advantages, as it was already a shareholder in Georgian Telecom.

Among other bidders for Georgian Telecom was the Mexican company Telcel.

The Metromedia International Group, Inc. investments in communications and media businesses that operate mainly in Russia and Georgia.

The company owns 34.5% of shares of Georgia?s leading mobile operator MagtiCom, as well as 85% of Ayety LLC, a cable television provider in capital Tbilisi.