Konstantin Maloffev’s Marshall Capital Partners has agreed to sell its entire 10.7% stake in Rostelecom to billionaire Arkady Rotenberg’s Bellared Holdings.
Announcing the deal today, the state-controlled telco said the new shareholder’s…
Konstantin Maloffev’s Marshall Capital Partners has agreed to sell its entire 10.7% stake in Rostelecom to billionaire Arkady Rotenberg’s Bellared Holdings.
Announcing the deal today, the state-controlled telco said the new shareholder’s representatives – Rotenberg, Nikolai Sabitov and Artem Obolensky – will be nominated to the board of directors. The composition of the board, which currently has 11 members, will be decided upon at a company AGM in June.
A friend and former judo partner of Russian president Vladimir Putin, Rotenberg, whose fast-growing business spans gas pipelines, road construction and banking, has a net worth Forbes magazine estimates at US$1bn.
While Rostelecom and the private investment companies have not disclosed the value of the deal, Russian newspaper Vedomosti reported Rotenberg paid a 22% premium on shares, valuing the 10.7% stake at US$1.55bn.
A Rostelecom spokesperson said the deal is positive for the company and its shareholders, pointing to the Russian media reports stating Rotenberg paid a “much higher” price for the shares than their current trading value.
Media internationally have speculated that the deal may fast-track a much-anticipated management change at Rostelecom. Rumours sparked that CEO Alexander Provotorov, who previously worked for Marshall Capital, may be replaced following a cabinet reshuffle last year. Russian news agencies recently quoted deputy prime minister Arkady Dvorkovich as saying the government is actively discussing a management re-jig at the telco.
At the time of writing, the MICEX-RTS-listed telco’s shares were up 1.62% to Rbs124.71 (US$4.06) per share.