Comstar has purchased 75% plus one share, with an option to acquire the remaining stake in the group.
CallNet, which provides transit operator services between networks, and Internet service provider Cornet, comprise the second largest telecommunications group in Armenia. Cornet has a fast-growing customer base, including 76% of the banking sector in Armenia. In 2005 the group's consolidated revenue doubled year-on-year to $4.3 million.
Eric Franke, CEO and President of Comstar UTS, said that the purchase was part of an investment and expansion plan announced by the company earlier in October. It follows a June 2006 agreement between Comstar and Ukraine's Neotel to set up a Comstar subsidiary in Ukraine.
Comstar UTS, formed in November 2004 through a merger of Comstar, MTU-Inform and Telmos, said its strategic vision was focused on further growth of its top line using the group's resources, cross-selling to existing and new customers of the whole range of products and services, accelerating regional expansion, and introducing performance-based compensation systems.
Comstar's main shareholder is AFK Sistema [RTS: AFKS], which holds a 54.58% stake.
