Russian cableco ER Telecom and local takeover target, smaller rival Akado, have reportedly agreed to extend their exclusive talks until mid-October.
While ER Telecom instigated the extension, Akado shareholders would also like more time to assess the…
Russian cableco ER Telecom and local takeover target, smaller rival Akado, have reportedly agreed to extend their exclusive talks until mid-October.
While ER Telecom instigated the extension, Akado shareholders would also like more time to assess the potential deal, said to be valued at about US$1bn-US$1.1bn, Russian newspaper Kommerstant reported citing an unnamed source familiar with the matter.
The source said the deal, already cleared by the Russian antitrust regulator, could still close this month or in early October as shareholders in both companies have agreed to it “in principle”.
While shareholders in Moscow-based Akado were said to have previously valued the company at US$1.2bn, the purchase price is now between US$1bn and US$1.1bn, including US$390m in debt, the source claimed.
ER Telecom, Akado and the latter’s shareholders, Renova and businessman Yuri Pripachkin, have all declined to comment on the matter.
Russia’s Federal Antimonopoly Service (FAS) announced in late July that it had approved ER Telecom’s request to acquire 100% of the shares of Akado’s major shareholder Renova Media Enterprises. Renova Media Enterprises, part of billionaire Viktor Vekselberg’s Renova Group, owns 67% of Akado, while businessman Yuri Pripachkin owns the remaining 33%.
ER Telecom is owned by PFIG Holding, Baring Vodtok Fund and the company’s top management. The triple-play operator claims to have more than five million subscribers across 56 cities.
