VelaTel Global Communications, a San Diego, California-based company engaged in the acquisition of spectrum assets, recently announced that it expanded its presence in the Balkans region by acquiring a 51% stake in Kersyco Trading Limited, a holding company, and its operating subsidiary, VeratNet d.o.o.
VELA entered into a Business Cooperation Agreement with shareholders of Cyprus holding company Kerseyco Trading Limited to acquire at least a 51% controlling interest in Kerseyco and its Serbian operating subsidiary, VeratNet. VELA expects to complete the transaction in February 2012.
VeratNet is a leading telecommunications operator and internet service provider in Serbia. The company offers a full range of telecommunication services, including ADSL broadband service nationwide and wireless broadband access in three cities where it holds radio frequency licenses. It provides specialty services to business customers, such as international private leased circuit services, dedicated wireless internet lines and dedicated web server hosting.
Under the terms of the agreement, VelaTel will provide CAPEX and OPEX necessary to continue VeratNet’s existing operations and to upgrade Verat’s existing WBA infrastructure equipment with higher capacity equipment in exchange for the 51% equity stake.
The upgraded WBA infrastructure equipment will more than double the subscriber capacity of Verat’s WBA network and allow the company to add new wireless customers. VELA expects to complete the deployment of the new equipment during the summer of 2012. VELA, which also recently acquired companies with WBA assets in neighboring Balkan countries of Croatia and Montenegro, plans to deploy the new equipment in all three markets simultaneously. The deployment of the new equipment is expected to result in substantial expense savings and strategic synergies.
As per the terms of the agreement, VelaTel also has the opportunity to expand its equity stake from 51% to 75% in exchange for a further expansion of the WBA network to at least 50 BTS. VELA expects the potential network expansion to occur as a result of subscriber growth within Verat’s existing license territory or if Verat is awarded WBA licenses covering additional geographic regions in Serbia.
Source smallcapnetwork.com
