Russia’s Rostelecom will offer to buy out minority shareholders who oppose its plan to spin off its mobile assets in a venture with Tele2 Russia.
The move further confirms Rostelecom’s apparent decision to switch its focus from mobile to internet…
Russia’s Rostelecom will offer to buy out minority shareholders who oppose its plan to spin off its mobile assets in a venture with Tele2 Russia.
The move further confirms Rostelecom’s apparent decision to switch its focus from mobile to internet services and content. The board of directors is scheduled to meet on 19 November to discuss the spinoff, a spokesperson said.
According to reports, the agreement between the two operators will see state-controlled Rostelecom transfer certain mobile assets and debt of about US$1bn to the JV. The second phase, to take place in 2014, will see Rostelecom transfer additional mobile assets.
Earlier this month, local newspapers suggested that VTB Bank and businessman Yury Kovalchuk, chair and part owner of Bank Rossiya, will have a controlling stake in the JV.
VTB and Kovalchuk will reportedly own between 51% and 60% of the new company, while Rostelecom will own the remaining 40% to 49%.
Bank Rossiya was part of the local investment group which acquired a 50% stake in Tele2 Russia from VTB in October for an undisclosed sum. VTB, which bought 100% of Tele2 Russia from its Swedish parent for US$3.55bn in March, retains the remaining 50% stake.
Tele2 Russia is the nation’s fourth largest operator, while Rostelecom is number five. The top three are MTS, MegaFon and VimpelCom.
