Russian cableco ER Telecom’s proposed takeover of smaller rival Akado may not go ahead following objections from Moscow city authorities.
The companies’ talks have stalled, in large part due to the authorities’ negative views on the proposed deal,…
Russian cableco ER Telecom’s proposed takeover of smaller rival Akado may not go ahead following objections from Moscow city authorities.
The companies’ talks have stalled, in large part due to the authorities’ negative views on the proposed deal, local newspaper Vedomosti wrote.
Last month, the parties reportedly agreed to extend their exclusive talks until mid-October to have more time to assess the potential deal, which has already received clearance from Russia’s Federal Antimonopoly Service (FAS).
At the time, local paper Kommersant cited a source familiar with the matter as saying the deal could close in October as the parties had already agreed to it in principle. While shareholders in triple-play operator Akado were said to have previously valued the company at US$1.2bn, the purchase price is now between US$1bn and US$1.1bn, including US$390m in debt, the source claimed.
Neither company was immediately available for comment.
The FAS announced in late July it had approved ER Telecom’s request to acquire 100% of the shares of Akado’s major shareholder Renova Media Enterprises.
The company, part of billionaire Viktor Vekselberg’s Renova Group, owns 67% of Akado, while businessman Yuri Pripachkin holds the remaining 33%.
ER Telecom is owned by PFIG Holding, Baring Vodtok Fund and the company’s top management. Also a triple-play operator, the company claims to have more than five million subscribers across 56 cities and is said to be keen to enter the Moscow market, where Akado is a key player.
Akado has reportedly attracted interest from several major Russian operators in recent years, including Rostelecom, MegaFon and MTS.
