Russia’s Federal Agency for State Property Management plans to start preparing terms and conditions for the privatisation of Rostelecom by July ahead of a sale by the end of the year, according to director Olga Dergunova.
Speaking on the sidelines of…
Russia’s Federal Agency for State Property Management plans to start preparing terms and conditions for the privatisation of Rostelecom by July ahead of a sale by the end of the year, according to director Olga Dergunova.
Speaking on the sidelines of the St Petersburg Economic Forum, Dergunova told reporters that the agency, Communications Ministry and consultants are working on the terms and conditions.
“On the whole, they are worded,” she was quoted by Russian state-owned news agency Itar-Tass as saying.
At present, she said the agency is working with Rostelecom’s “special clients” to ensure their technical requirements will continue to be met post-privatisation.
“It means a discussion with special clients, determination of technical conditions – a new investor will have to comply with these requirements.”
The Moscow Stock Exchange will be the main platform for the placement, she noted.
The Russian state owns 52.32% of Rostelecom’s ordinary shares via the agency, Vnesheconombank and the Russian Direct Investment Fund. Rostelecom owns 13.33% of its own ordinary shares and subsidiary Mobitel 6.77%.
Moscow-based operator Rostelecom was one of multiple state-owned assets tabled for privatisation between 2014 and 2016 in a July government decree. Sberbank was hired to advise on the Rostelecom privatisation.
Meanwhile, Rostelecom is working to establish a mobile joint venture, T2 RTK Holding, with Tele2 Russia. This should enable them to better compete with the nation’s three largest mobile operators: MTS, MegaFon and VimpelCom. Rostelecom and Tele2 Russia expect the new company to be established by the end of the year.
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.
