Russian state-controlled telco Rostelecom reportedly plans to buy local WiMax operator FreshTel in a Rbs1.7bn (US$42.8m) deal.
Rostelecom intends to pay Rbs210m (US$5.3m) for FreshTel, indirectly controlled by Russian tycoon Suleiman Kerimov and…
Russian state-controlled telco Rostelecom reportedly plans to buy local WiMax operator FreshTel in a Rbs1.7bn (US$42.8m) deal.
Rostelecom intends to pay Rbs210m (US$5.3m) for FreshTel, indirectly controlled by Russian tycoon Suleiman Kerimov and Ukrainian billionaire Victor Pinchuk, and take on long-term debt of Rbs1.5bn (US$37.5m), local newspaper Kommersant reported citing a source familiar with the transaction.
This would represent a major discount to the US$200m valuation mooted when Russian Railways-owned telco TransTelekom (TTK) looked at buying the operator, which provides 4G wireless broadband internet services in Russia and Ukraine, last year.
The Federal Property Management Agency, which has a 46.99% stake in Rostelecom, has yet to approve the US$42.8m valuation, the report stated.
Rostelecom and FreshTel have declined to comment on the matter.
Last week, Russia’s Federal Antimonopoly Service (FAS) reportedly allowed Rostelecom to buy FreshTel group companies including Interproekt, Capital, Progress and Orion.
FAS approved state-owned Vnesheconombank’s acquisition of a 99.9% stake in FreshTel in August. Local reports at the time suggested the bank was unlikely to keep the asset for long, naming Rostelecom as the eventual buyer.
Also in August, Rostelecom and rival operator Tele2 Russia, co-owned by VEB and a consortium of local investors, completed their deal to create a mobile joint venture. The companies hope the JV will enable them to better compete with larger mobile rivals MTS, MegaFon and VimpelCom.
