A majority of Rostelecom’s shareholders have voted in favour of hiving off its mobile assets, valued at approximately Rbs19.5bn (US$590m).
During an EGM on 30 December, 85.2% of the shareholders present, who collectively own 61.1% of voting shares in…
A majority of Rostelecom’s shareholders have voted in favour of hiving off its mobile assets, valued at approximately Rbs19.5bn (US$590m).
During an EGM on 30 December, 85.2% of the shareholders present, who collectively own 61.1% of voting shares in the Russian state-owned operator, approved the reorganisation.
In mid-December, Rostelecom’s board of directors had rubberstamped the move, which will see its mobile assets transferred into a joint venture with larger rival Tele2 Russia. Under the agreement, Tele2 Russia will own 55% of the T2 RTK Holding, with Rostelecom holding the remainder.
The transaction is scheduled to be completed by Q2 2014.
The deal is expected to better place Rostelecom and Tele2 Russia to compete with the nation’s big three mobile operators: MTS, MegaFon and VimpelCom.
Commenting on the shareholder approval, Rostelecom president Sergey Kalugin said: “By combining assets, the JV’s market share by subscribers will be 16%. The new company will have a complete portfolio of frequencies and will operate commercially in 64 Russian regions. We believe that we are in fact creating a national mobile operator that has all the opportunities to be competitive on a national scale, and have great growth potential.”
Rostelecom’s financial advisers on the transaction were Credit Suisse and JP Morgan. Barclays issued a fairness opinion and Linklaters provided legal counsel.
Tele2 Russia shareholders received financial advice from VTB Capital and UBS and legal advice from Skadden.
