Russia’s antitrust regulator has granted cableco ER Telecom clearance to acquire triple-play operator Akado.
The Federal Antimonopoly Service (FAS) announced that it has approved ER Telecom’s request to acquire 100% of the voting shares of…
Russia’s antitrust regulator has granted cableco ER Telecom clearance to acquire triple-play operator Akado.
The Federal Antimonopoly Service (FAS) announced that it has approved ER Telecom’s request to acquire 100% of the voting shares of Bahamas-based Renova Media Enterprises, Akado’s majority shareholder.
Renova Media Enterprises, part of billionaire Viktor Vekselberg’s Renova Group, owns 67% of Akado, while businessman Yuri Pripachkin owns the remaining 33%.
A spokesperson for Akado confirmed that FAS has approved the acquisition but said no deal has been agreed to. An ER Telecom spokesperson declined to comment.
Earlier local reports suggested that ER Telecom, also a triple-play provider, will pay US$1bn for Akado and that VTB bank will support the financing.
Moscow-based Akado, which provides broadband, cable TV and telephony services, has attracted interest from several major Russian operators in recent years.
In 2010, state-controlled Rostelecom was reportedly in talks to acquire Akado but a deal never eventuated because Svyazinvest, its state-controlled telecoms holding shareholder, decided the US$1.2bn valuation was too high.
The following year, Russia’s second-largest mobile operator MegaFon was reported to have looked into acquiring the smaller operator.
In May, Russian news agency Interfax quoted Vekselberg as saying he would consider a good offer for Akado but was in no hurry to sell.
Last month, a local newspaper cited an unidentified telecoms source as saying MTS, the nation’s largest mobile operator, was in talks to acquire Akado – a deal which would have given the operator a market share of close to 50% in Moscow.
ER Telecom is owned by PFIG Holding, Baring Vodtok Fund and the company’s top management. It claims to have more than five million subscribers across 56 cities.
