Russian private investment firms Marshall Capital Partners (MarCap) and Bellared Holdings have reneged on a sale agreement for the former’s entire 10.7% stake in Rostelecom.
The state-controlled telco issued a statement today acknowledging that MarCap…
Russian private investment firms Marshall Capital Partners (MarCap) and Bellared Holdings have reneged on a sale agreement for the former’s entire 10.7% stake in Rostelecom.
The state-controlled telco issued a statement today acknowledging that MarCap and Bellared, owned by oligarchs Konstantin Malofeyev and Arkady Rotenberg respectively, have “amicably agreed to terminate their agreement”.
“A deal could not be completed within the one month timeframe agreed between both parties, freeing both parties of their mutual obligations to each other in relation to the deal,” the statement read.
MarCap and Bellared have issued their own press release providing the same reason for ending the deal, first announced by Rostelecom on 1 March.
Their statement says they have “reached mutual understanding” on the matter, adding that they have not ruled out the possibility of working together on future projects.
In its 1 March announcement, Rostelecom said Rotenberg – a construction tycoon and friend and former judo partner of Russian president Vladimir Putin – and two other Bellared representatives would be nominated to the company’s board.
While the parties did not disclose the value of the deal, said to have fast-tracked the departure of Rostelecom’s former president Alexander Provotorov, Russian media reported at the time that Rotenberg paid a 22% premium on shares, valuing the 10.7% stake at US$1.55bn. Kremlin-backed Sergei Kalugin has since replaced Provotorov.
A MarCap spokesperson has said the firm is assessing options for its Rostelecom stake.
Since the MarCap-Bellared deal was announced, Russia’s VTB Group acquired mobile operator Tele2 Russia in a deal worth US$3.55bn. Media have speculated that VTB, which considers the deal a “private equity investment”, could eventually sell Tele2 Russia to Rostelecom.
Russia’s Federal State Property Management Agency (FSPMA) director Olga Dergunova was recently quoted in Russian media as saying the government might sell its entire indirect controlling stake in Rostelecom as early as this year. The government holds its 55.17% stake in the telco via holding company Svyazinvest, the FSPMA and Vnesheconombank (VEB).
