Rostelecom’s board of directors have approved its planned purchase of local WiMax operator FreshTel subject to certain conditions.
The initial purchase price, based on an independent valuation in June 2014, will be up to Rbs210m (US$3.6m), the…
Rostelecom’s board of directors have approved its planned purchase of local WiMax operator FreshTel subject to certain conditions.
The initial purchase price, based on an independent valuation in June 2014, will be up to Rbs210m (US$3.6m), the Russian state-controlled telco said in a statement. However, if the State Radio Frequency Commission (SFRC) decides to grant FreshTel certain LTE spectrum permits by the end of the year, an additional payment of up to Rbs670m (US$11.6m) may be required.
The board has also asked management to negotiate with Vnesheconombank (VEB) on financing the project given changes in the macroeconomic situation and FreshTel’s financial and economic position since the independent valuation was completed. This would include discussions on debt restructuring.
According to local media reports late last year, the acquisition would also see Rostelecom take on long-term debt of Rbs1.5bn (US$25.9m).
The Federal Antimonopoly Service (FAS) has already cleared the planned deal.
Meanwhile, the board has also decided to extend Sergey Kalugin’s term as president of the company – a role he has held since March 2013.
