Russia’s Rostelecom is reportedly targeting Bank Rossiya’s Sobinbank unit as part of plans to expand into financial services.
The state-controlled telco and St Petersburg-based bank are in talks about a potential deal, according to local newspaper…
Russia’s Rostelecom is reportedly targeting Bank Rossiya’s Sobinbank unit as part of plans to expand into financial services.
The state-controlled telco and St Petersburg-based bank are in talks about a potential deal, according to local newspaper Kommersant citing unnamed sources.
A Rostelecom spokesperson confirmed the telco may be interested in entering the financial services market but declined to comment on potential M&A targets.
Early this month, two Netherlands-based representatives of Bank Rossiya, in which billionaire Yury Kovalchuk is the largest shareholder, filed an application with the Russian antitrust authority for clearance to acquire up to 50% of mobile operator Tele2 Russia. A spokesperson for the authority, the Federal Antimonopoly Service (FAS), confirmed receipt of the application from the two companies – Invitel and ABR Investments – saying a decision will be made within 30 days.
Meanwhile, Bloomberg cited a Bank Rossiya spokesperson as saying the bank may bring new partners into Sobinbank to develop a mobile bank.
Russia’s largest mobile operator MTS already offers banking services in its retail stores.
Separately, Russian newspaper Vedomosti cited unnamed sources familiar with the matter as saying Rostelecom’s strategic plan for 2014 to 2018 provides for a gradual reduction in capital expenditure. Investments will equal about 20% of the company’s revenue in 2014, but just 10% or less in 2018, the report stated.
The strategic plan also reportedly shows Rostelecom intends to focus on broadband internet services. The telco will concentrate on how best to monetise its network, which already reaches more than 50% of Russian households, rather than expand it, according to the report.
A Rostelecom spokesperson declined to comment on strategy updates citing company policy. He explained that the company intends to present the updated plan to the board later this month, after which it will be able to share its plans with the market.
