May 21 (Bloomberg) -- OAO Comstar United TeleSystems headed for its biggest gain in 10 months after agreeing to sell its 25 percent stake in OAO Svyazinvest to OAO Rostelecom.
Comstar agreed to sell the stake Svyazinvest, the monopoly for fixed-line telephone operators, for 26 billion rubles ($839 million), according to a statement today. The Russian telephone and internet stock advanced 8 percent to 183.6 rubles as of 12:32 p.m. in Moscow, headed for its biggest gain since July.
“We view this news as supportive for Comstar,” Victor Mishnyakov and Kirill Bakhtin, analysts at Uralsib Financial Corp. in Moscow, wrote in a note to investors today. Comstar will use the funds from the sale to redeem 26 billion rubles in outstanding debt to OAO Sberbank, Russia’s largest lender, the analysts wrote.
Long-distance provider Rostelecom fell as much as 6.5 percent and last traded 3.9 percent lower at 98.68 rubles, heading for its third day of losses.
To contact the reporter on this story: Jason Corcoran at Jcorcoran13@bloomberg.net
To contact the editor responsible for this story: Gavin Serkin at email@example.com