LONDON - Global TeleSystems, Inc. ("GTS") (NYSE: GTS; Easdaq:
GTSG; Frankfurt: GTS) today announced that it had reached an agreement to
sell most of the equity it owns in Golden Telecom, Inc. ("Golden Telecom")
(NASDAQ: GLDN) for $125 million. The purchasers include Alfa Group
("Alfa"), which is one of Russia's largest private financial and industrial
groups; and two current investors in Golden Telecom: Capital International
Global Emerging Markets Private Equity Fund, L.P. ("Capital") and a group of
funds affiliated with Baring Private Equity Partners Group ("Barings").
Golden Telecom provides a broad range of telecommunication services to
businesses, telecommunication providers and consumers in the Commonwealth of
Independent States. The closing of the sale is subject to obtaining U.S.
Hart Scott Rodino approval, the completion of SEC Form 10-K for 2000 with
standard auditor's opinion and other customary conditions, and is expected
to occur during the second quarter of 2001.
Prior to today's announcement, GTS owned approximately 15.1 million shares,
or about 61.5%, of Golden Telecom. Under the terms of the agreement, GTS
will sell approximately 12.2 million shares of Golden Telecom at a price of
$10.25 per-share of common stock, for a total of $125 million, and will
retain approximately 2.9 million shares, or 11.7% of Golden Telecom. Alfa
will purchase approximately 10.7 million shares or about 43.8% for $110
million; Barings will be acquiring approximately 1.0 million shares for $10
million, bringing their total interest in Golden Telecom to approximately to
1.9 million shares or approximately 7.6%; and Capital will be acquiring
approximately 0.5 million shares for $5 million, bringing their total
interest in Golden Telecom to approximately to 2.2 million shares, or about
8.8%.
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