St Petersburg-based Bank Rossiya has reportedly agreed in principle to buy a 30% stake in mobile operator Tele2 Russia from its state-controlled banking group owner, VTB.
Russian newspaper Vedomosti cited unnamed sources as saying Bank Rossiya has…
St Petersburg-based Bank Rossiya has reportedly agreed in principle to buy a 30% stake in mobile operator Tele2 Russia from its state-controlled banking group owner, VTB.
Russian newspaper Vedomosti cited unnamed sources as saying Bank Rossiya has agreed to acquire the stake as an intermediary, with plans to later sell it on. The eventual buyer could be state-controlled telco Rostelecom, the report cited sources as saying.
According to the report, the deal has not been finalised because of a clause in VTB’s agreement with Swedish telecoms group Tele2, from which it acquired the Russian business in April for US$3.55bn. The clause states that, if VTB sells Tele2 Russia within a year, the Swedish group is entitled to half the proceeds.
VTB and Bank Rossiya have declined to comment.
VTB has made it clear that it does not consider Tele2 Russia a long-term investment.
In April, CFO Herbert Moos said the bank planned to sell a controlling stake within a year and was in talks with both local and foreign investors.
Last week, VTB’s first deputy president, Yuri Soloviev, told reporters at the St Petersburg Investment Forum that the bank was in advanced talks with a number of private investors. Solviev said a “certain” stake in Tele2 Russia would be sold within the next three to four months, noting that VTB will retain control of the company.
Solviev said VTB was not in talks to sell a stake to Rostelecom, adding that the bank was looking for co-investors to help develop Tele2 Russia.
There has been persistent speculation about an eventual tie-up between Tele2 Russia and Rostelecom. Last week, a Rostelecom spokesperson confirmed that the two companies are discussing an MVNO agreement, noting that Rostelecom is “exploring different opportunities to cooperate with Tele2 Russia”.
The tie-up rumours were also fuelled by former Rostelecom head Alexander Provotrov’s recent appointment as CEO of Tele2 Russia.
