Vladimir Evtushenkov, the billionaire founder of Russia’s Mobile TeleSystems (MTS), has said he is eyeing acquisition opportunities both in and outside Russia, including the Czech Republic and India.
Evtushenvok, the major shareholder and chairman of…
Vladimir Evtushenkov, the billionaire founder of Russia’s Mobile TeleSystems (MTS), has said he is eyeing acquisition opportunities both in and outside Russia, including the Czech Republic and India.
Evtushenvok, the major shareholder and chairman of MTS’ majority shareholder Sistema, said in an interview with Bloomberg that he is assessing targets in several markets, although he has not made any firm bids.
He identified Telefonica Czech Republic and Tele2 Russia as two potential takeover targets as well as India, where Sistema already has mobile operations, as a target market.
“We are considering all possibilities everywhere,” he was quoted as saying, adding that the company receives and assesses “different proposals”.
Evtushenkov also reportedly said Sistema is developing MTS – Russia’s largest mobile operator – as a company which makes value-accretive acquisitions, not acquisitions at any price.
Spanish incumbent Telefonica, currently working to reduce net debt from €51bn to €47bn by the end of the year, has reportedly mandated BofA Merrill Lynch to look at asset sales in countries including the Czech Republic. Earlier this month, the telco secured regulatory approvals to sell 40% of its stake in several Central American units for US$500m and, last month, sold O2 Ireland to Hong Kong’s Hutchison Whampoa for an initial €780m.
Meanwhile, state-controlled VTB Bank, which acquired Tele2 Russia earlier this year for US$3.55bn, has made it clear it does not consider the mobile operator a long-term investment. In June, VTB first deputy president Yuri Soloviev told reporters that his company was in advanced talks with a number of private investors, saying a “certain” stake in Tele2 Russia would be sold within four months. Later in the month, local newspaper Vedomosti reported that VTB had agreed in principle to sell a 30% stake in Tele2 Russia to St Petersburg-based Bank Rossiya. According to the report, Bank Rossiya is acting as an intermediary and plans to sell the stake on.
Sistema owns 50.8% of MTS, while the remaining shares are in free float.
Sistema’s Indian unit Sistema Shyam TeleServices, which operates under the MTS India brand, has about 10 million subscribers. Earlier this year, the Economic Times reported that Sistema had looked at Indian operators such as Tata Teleservices and Aircel as possible targets.
In his interview with Bloomberg, Evtushenkov declined to comment on acquisition targets in India.
