The largest shareholder of Bank Rossiya, Yuri Kovalchuk, is reportedly interested in acquiring the Russian state’s stake in Rostelcom.
The telco’s management and Federal Property Agency and other government officials are discussing Kovalchuk as a…
The largest shareholder of Bank Rossiya, Yuri Kovalchuk, is reportedly interested in acquiring the Russian state’s stake in Rostelcom.
The telco’s management and Federal Property Agency and other government officials are discussing Kovalchuk as a potential buyer, local newspaper Vedomosti reported citing sources close to Rostelecom and shareholders.
Kovalchuk could purchase the shares via long-term partners from the VTB banking group, which owns 50% of Rostelecom’s mobile joint venture partner Tele2 Russia, or Gazprombank, the report stated.
Rostelecom and the Federal Property Agency were not immediately available for comment.
Yesterday, it emerged that Bank Rossiya board member Mikhail Noskov will be the president and CEO of the JV, which will operate under the Tele2 Russia brand name. Bank Rossiya is part of the investor group that owns a 50% stake in Tele2 Russia, while VTB owns the remaining 50%.
The state, which indirectly owns 52.32% of Rostelecom’s ordinary shares, hired Sberbank to manage the privatisation process. TelecomFinance understands the bank is due to present the government with a report on its recommendations for the process this March.
Moscow-based Rostelecom was one of multiple state-owned assets tabled for privatisation between 2014 and 2016 in a July 2013 government decree. Government officials have been quoted as saying Rostelecom’s privatisation will take place in 2014, while communications minister Nikolai Nikiforov reportedly said the state expects to raise at least US$5bn from the sale.
However, analysts have expressed doubt that Rostelecom’s privatisation will take place this year.
Timur Nigmatullin, an analyst at Investcafe in Moscow, said he expects the process to be delayed until 2015 given Rostelecom still needs to sell treasury shares and complete the transfer of mobile assets to the new JV. The current crisis in Ukraine is another reason 2014 is not the right time for the transaction, he said, noting that the federal budget needs the sale to raise at least Rbs150bn (US$4.17bn), or Rbs150-Rbs160 (US$4.2-US$4.4) per share.
