OREANDA-NEWS. On 31 December 2008 was announced, that Extraordinary General Shareholders Meeting of OJSC “MegaFon” took a decision on the Company’s reorganization in the form of merger with its subsidiaries. The Shareholders voted unanimously in favor of merging MegaFon’s subsidiaries into the Parent company.

The Board of Directors of MegaFon had a unanimous positive assessment of the potential effect from the reorganization of the company’s subsidiaries and brought this decision to the attention of the Extraordinary General Shareholders meeting. Based on detailed analysis MegaFon’s shareholders came to  the conclusion that the planned merger of the subsidiaries would increase the value of the combined company and become an additional impetus for its further development.

"Licenses for long distance domestic and international communication as well as frequency spectrum for rolling out 3G network are issued to the name of OJSC “MegaFon”, and it did not allow the subsidiaries implementing these licenses to full scope in their regions. Merger of subsidiaries into OJSC “MegaFon” has resolved this issue,” said Sergey Soldatenkov, Chief Executive Officer of MegaFon.

Centralization processes have been ongoing in MegaFon for several years already, and during this time they have improved considerably the company’s manageability and transparency: policies and regulations have been unified in the area of corporate development, technology, commerce, finance, IT, implementation of new technologies and human resources management. MegaFon is perceived by the market as a single company with uniform standards of management. Further to unification of business-processes the Company has already obtained the experience of legal reorganization: in autumn 2006 there was a successful merger of CJSC “Mobicom-Kirov” to CJSC “Ural GSM” and CJSC “Volzhsky GSM” to OJSC “MCS-Povolzhie”.