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ORLAND PARK, IL, November 5, 2001— Group Menatep and Andrew
Corporation (NASDAQ: ANDW) announced today that they have signed an
agreement under which Group Menatep will acquire all of Andrew
Corporation’s interests in a group of Russia-related
telecommunications services companies.
The transaction includes a 49% stake in ZAO Rascom, 45% stake in ZAO
Metrocom, 45% stake in MAcomnet, 64.47% stake in Magistral-Telecom, and
99.72% equity stake in ZAO MKS. These companies are also known as “The
MirTeleKom Association” and provide local, domestic long-distance, and
international voice and data communications to corporate customers and
other telecommunications carriers. In addition, Group Menatep agreed to
purchase 100% of Andrew Telecom (US) an international telecommunications
carrier based in the United States. Andrew Corporation and Group Menatep
expect to complete the transaction as soon as the necessary regulatory
approvals have been received.
The equity interests will be held and managed by Antel Holdings Ltd.,
a new, wholly owned subsidiary of Group Menatep. Andrei
Vladimirov-Kryukov, director of Antel Holdings, said: “We view the
telecom sector as a promising and vital segment of the Russian economy
going forward. We also understand that the industry is becoming
increasingly competitive due to the strength of the existing players and
recent new entries into the market. However, we have both sufficient
resources to develop the acquired businesses and the commitment to
assemble a premier telecommunications management team in Russia. We view
this acquisition as only an initial step by Group Menatep towards
developing a sizeable presence in the telecommunication services
industry.”
Floyd English, chairman, president and chief executive officer of
Andrew said: “Andrew is proud to have been an early investor and
contributor to the development of a modern, competitive
telecommunications market in Russia. We are pleased Group Menatep has
the financial strength, commitment and vision to continue the
network’s development.”
Group Menatep is a diversified financial holding company. It has a
controlling stake in Yukos Oil Company, the second biggest oil producer
in Russia, controlling stakes in Bank Menatep St. Petersburg and Trust
and Investment Bank, as well as a number of portfolio investments.
Brunswick UBS Warburg acted as the financial advisor and Clifford
Chance Pünder as legal advisor to Group Menatep on this transaction
while ABN-AMRO Corporate Finance acted as the financial advisor and
Baker & McKenzie as legal advisor to Andrew Corporation.
Forward Looking Statements
Some of the statements in this news release are forward looking
statements and we caution our stockholders and others that these
statements involve certain risks and uncertainties. Factors that may
cause actual results to differ from expected results include, but are
not limited to the effects of competitive products and pricing, economic
and political conditions that may impact customers’ ability to fund
purchases of our products and services, the company’s ability to
achieve the costs savings anticipated from cost reduction programs,
fluctuations in international exchange rates, the timing of cash
payments and receipts, end use demand for wireless communication
services, and other business factors. Investors should also review other
risks and uncertainties discussed in company documents filed with the
Securities and Exchange Commission.
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