Russian state-controlled Rostelecom has agreed to buy out its largest minority shareholder in a deal worth Rbs25.2bn (US$774.86m).
Rostelecom subsidiary Mobitel will acquire the 7.45% stake from Gazprombank, which holds the ordinary shares on behalf of…
Russian state-controlled Rostelecom has agreed to buy out its largest minority shareholder in a deal worth Rbs25.2bn (US$774.86m).
Rostelecom subsidiary Mobitel will acquire the 7.45% stake from Gazprombank, which holds the ordinary shares on behalf of billionaire Konstantin Malofeyev’s Marshall Capital Partners (MarCap). The deal sees Mobitel’s stake in Rostelecom rise to 9.38%, the Moscow-based telco said in a statement.
Gazprombank has simultaneously acquired a stake in Rostelecom. However neither the size of the stake nor the price paid for it was disclosed.
Rostelecom president Sergey Kalugin said the deal marks the closure of “a certain period” in the company’s history.
“We are delighted that Gazprombank has joined our investor base, having acquired the stake in the company. Gazprombank’s acquisition follows the recent Rbs7.7bn [US$236.76m] investment in Rostelecom by the Russian Direct Investment Fund and Deutsche Bank, deals which reflect the company’s desire to work with institutional investors with expertise in global TMT markets.”
A Rostelecom spokesperson declined to comment on how many shares Gazprombank has acquired, but said the company hopes it is a long-term investment.
Earlier this year, MarCap agreed to sell its then 10.7% stake in Rostelecom to fellow oligarch Arkady Rotenberg’s Bellared Holdings. However, the two reneged on the deal in April, saying they had “amicably agreed to terminate their agreement”.
MarCap reduced its stake to 7.45% in September as part of a Rostelecom share buyback.
Meanwhile, Russian telecoms minister Nikolay Nikiforov told Bloomberg he believes a potential merger between Rostelecom and the VTB banking group’s Tele2 Russia would boost competition for the country’s three biggest mobile operators: MTS, MegaFon and VimpelCom.
Rostelecom’s board of directors is set to meet tomorrow to discuss spinning off its mobile assets in a venture with Tele2 Russia. If the spinoff is approved, Rostelecom intends to offer to buy out minority shareholders who oppose the plan.
