A key shareholder in Russian telco Rostelecom has come out in favour of an acquisition of smaller rival Tele2 Russia.
In an interview with Bloomberg, Konstantin Malofeev described the local subsidiary of Swedish telco Tele2 as a “perfect fit” for…
A key shareholder in Russian telco Rostelecom has come out in favour of an acquisition of smaller rival Tele2 Russia.
In an interview with Bloomberg, Konstantin Malofeev described the local subsidiary of Swedish telco Tele2 as a “perfect fit” for Rostelecom saying their networks were complementary.
Malofeev’s Marshall Capital holds a 10.5% stake in the operator, making him the second largest Rostelecom shareholder after the Russian government.
Speculation around Tele2 Russia’s position in the Russian market has mounted after it failed to obtain any 4G licences in July’s spectrum auction; the only one of the five main operators to be unsuccessful.
Subsequently there have been a variety of reports that suggest Tele2 Russia would either be incorporated into another operator or look for some sort of tie-up.
Tele2 Russia is said to be advised by Morgan Stanley on its options.
Last month Vedomosti reported that Rostelecom has been discussing some sort of tie-up with Tele2 Russia for more than six months. A director at Megafon said earlier this month that it would look at Tele2 Russia’s assets if they came up for sale.
A Russian sector banker noted in a recent interview with TelecomFinance that Tele2’s Russian unit accounts for 42% of the group EBITDA, meaning its stock would look “quite unattractive” without it. “[This] leads to the conclusion that the [parent company] will only sell Russia if there is also a solution on the other assets,” he said.
Rostelecom executives refused to comment on a potential deal with Tele2 Russia at the time of its Q3 results, but said they were open to opportunities in the local mobile and broadband markets.
On Monday Tele2’s CEO in Russia announced his departure.
