(Updates with more information)
LONDON (AFX) - Moscow-based fixed-line communications services group Comstar UTS said it has acquired a blocking stake of 25 pct plus one share in Svyazinvest from Mustcom Ltd for 1.3 bln usd.
Comstar said it and its MGTS Finance SA unit acquired the 4.88 bln Svyazinvest shares in a series of transactions.
Mustcom was the only private shareholder in Svyazinvest, leaving the other 75 pct minus one share in the hands of the Russian government.
In autumn, Economic Development Minister German Gref said Svyazinvest would not be privatised in 2007, calling it a strategic enterprise. It provides communication systems to the Russian army and to the security services.
Comstar is a unit of the conglomerate Sistema, which is controlled by billionaire Vladimir Yevtushenkov. newsdesk@afxnews.com rda/wj/afp/jsa COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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