Intracom Chairman Kokkalis Comments on Agreement With Sistema

Intracom Holdings SA (INTRK)'s Chairman Socrates Kokkalis comments on an agreement with Russia's AFK Sistema. Sitronics, Sistema's technology arm, will pay about 120 million euros ($143 million) for the controlling stake of Intracom's telecom unit. Kokkalis was speaking to shareholders in Athens.

On the deal with Sistema:

``The business value of the deal was estimated to be 440 million euros, while the price will be 120 million euros because there are also loans and other obligations.

``Sitronics will incorporate Intracom telecom into their general program of strategic development, which is info- communications, in all the countries in which we will expand.

On further cooperation:

``There are plans for further cooperation, which are just as important, if not even more important. Any details will be announced at a further time.

``Greece isn't enough any more to materialize what we have in mind and where we want to lead the company.

``Sistema is a company that has a strategy of development that is exactly what we are looking for: To develop in Russia, countries of the former Soviet Union and internationally, such as in Europe, America, and Asia.

On research and development:

``It will give us the opportunity to develop and to participate in the international business environment with more opportunities and better prospects.

``Sistema is interested in developing in the area that we are working. It has a large capacity to support research and development

``A new era has started for our company. I am now very optimistic about the development of Intracom telecom and Intracom in general.''

To contact the reporter on this story: Harry Papachristou in Athens at hpapachristo@bloomberg.net

To contact the editor responsible for this story: Riad Hamade at rhamade@bloomberg.net

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