Russia’s state-controlled VTB Group will work to increase the market value of recently-acquired mobile operator Tele2 Russia before on-selling it, CEO Andrei Kostin told media today.
Addressing reporters at the bank’s Moscow headquarters, Kostin…
Russia’s state-controlled VTB Group will work to increase the market value of recently-acquired mobile operator Tele2 Russia before on-selling it, CEO Andrei Kostin told media today.
Addressing reporters at the bank’s Moscow headquarters, Kostin said there could be several options for the sale of the operator, acquired from Sweden’s Tele2 in a deal worth US$3.55bn early this month.
He ruled out the possibility of selling off the company in small parts.
“Instead, there could be some mergers and the assignment of additional licences,” Russia’s Prime business news agency quoted him as saying.
Kostin was also quoted as saying that it is too early to say VTB is in “serious talks with someone (on the sale)”.
VTB representatives, set to become part of Tele2 Russia’s board of directors, will work with the operator’s management to develop a 12-month plan to improve its market value, he noted.
Last week, Russia’s largest mobile operator, MTS, said it planned to discuss in-country consolidation with VTB, following its failed bid for the company in partnership with VimpelCom.
Alfa Group investment arm, A1, also bid unsuccessfully for Tele2 Russia.
Since the deal closed, Bloomberg cited Renaissance Capital and Otkritie Financial Corp as saying VTB may sell Tele2 Russia to state-controlled telco Rostelecom.
