Russia’s Rostelecom and Tele2 Russia have completed the first stage of their deal to create a new mobile joint venture, T2 RTK Holding.
The first stage has seen state-controlled telco Rostelecom transfer the shares of its seven mobile units to…
Russia’s Rostelecom and Tele2 Russia have completed the first stage of their deal to create a new mobile joint venture, T2 RTK Holding.
The first stage has seen state-controlled telco Rostelecom transfer the shares of its seven mobile units to the JV. Around Rbs37bn (US$1.04bn) in debt was also transferred.
Tele2 Russia now has a 74% economic interest and 55% voting interest in the JV, which will operate under the Tele2 Russia brand, while Rostelecom has a 26% economic interest and 45% voting interest. As such, Tele2 Russia now has financial and operating control of Rostelecom’s mobile units.
The second stage of the process will see Rostelecom transfer all of its integrated mobile assets into RT Mobile, a 100% subsidiary set to be registered on 1 April. RT Mobile will subsequently be transferred to the JV. As such, Tele2 Russia will have operational but not financial control over Rostelecom’s integrated mobile assets.
The companies expect the second stage to complete by the end of the year and will see Tele2 Russia own 55% of the new operator, while Rostelecom will hold 45%. The new company will have around 38 million subscribers in more than 60 Russian regions, according to the companies.
Commenting on developments, Tele2 Russia CEO Mikhail Noskov said: “Our main priorities are a launch of operations in Moscow and 3G services in Tele2-penetrated regions, rebranding in Rostelecom regions, efficient integration in the Urals and, of course, a start of operations in new regions.”
Rostelecom remarked that possessing a stake in the JV will enable it to significantly strengthen its presence in Russia’s rapidly-evolving mobile data market and compete effectively with larger mobile rivals: MTS, MegaFon and VimpelCom.
While Rostelecom still has to take “a number of steps” before licences are reissued and RT-Mobile is transferred to the JV, Rostelecom CEO Sergey Kalugin said the companies are on track to completing on time.
