Russia’s Rostelecom is planning to secure a Rbs10bn (US$313.56m) loan with state-controlled bank VTB.
A spokesperson for the Moscow-based telco, also state-controlled, said the proposal is on the agenda for the next board of directors meeting,…
Russia’s Rostelecom is planning to secure a Rbs10bn (US$313.56m) loan with state-controlled bank VTB.
A spokesperson for the Moscow-based telco, also state-controlled, said the proposal is on the agenda for the next board of directors meeting, scheduled for 7 June, and “should” be approved.
About a week ago, the new CEO of Rostelecom, Sergey Kalugin, also announced that the company was planning to sell more than US$500m worth of treasury stock to cut debt.
Meanwhile, the recent appointment of former Rostelecom head Alexander Provotorov as CEO of rival mobile operator Tele2 Russia has fuelled speculation about a merger between the two companies.
Provotorov was replaced as CEO of Rostelecom by Kalugin in late March, just before VTB completed its acquisition of Tele2 Russia from its Swedish parent for US$3.55bn.
Media and analysts have since speculated that the two companies – Russia’s fourth and fifth largest mobile operators – will merge, creating a strong competitor to largest players MTS, MegaFon and VimpelCom.
While there has also been speculation that one of the larger operators will buy Tele2 Russia, the Federal Antimonopoly Service (FAS) has reportedly said it would oppose such a deal. However, local news agencies cited FAS head Igor Artmeyev as saying that he likes the idea of a Rostelecom-Tele2 combo as it would create a “powerful” fourth player in the market.
Also last month, VTB CFO Herbert Moos told reporters the organisation intends to divest a controlling stake in Tele2 Russia within a year and is discussing the matter with both local and foreign investors.
Speculation about Rostelecom’s potential privatisation also continues. Earlier this week, Russia’s Ministry of Economic Development included the telco in a list of planned privatisations, stating it intends to sell its entire 55.17% stake by the end of 2014.