Russian state-controlled Rostelecom reportedly plans to sell a 12% stake to the VTB banking group for up to Rbs35bn (US$995m).
The Moscow-based telco will use the proceeds to buy back shares held by minority investors opposed to the planned spinoff of…
Russian state-controlled Rostelecom reportedly plans to sell a 12% stake to the VTB banking group for up to Rbs35bn (US$995m).
The Moscow-based telco will use the proceeds to buy back shares held by minority investors opposed to the planned spinoff of its mobile assets into a joint venture with rival Tele2 Russia, local newspaper Kommersant reported. VTB owns 50% of Tele2 Russia.
Rostelecom is expected to sell the stake at market value and has the option to buy it back in two to three years, the report stated.
Rostelecom’s board of directors is reportedly set to meet next week to approve the “framework agreement” with Tele2 Russia to combine their mobile assets.
Rostelecom and Tele2 Russia – the nation’s fourth and fifth-largest mobile network operators, respectively – have declined to comment on the matter.
A majority of Rostelecom shareholders voted in favour of spinning off the mobile assets, valued at about Rbs19.5bn (US$590m), in late December. The agreement will see Tele2 Russia own 55% of the JV, T2 RTK Holding, and Rostelecom hold the remainder.
The transaction is expected to close by Q2 2014.
Provotorov offered post at new JV
Meanwhile, newspaper Investia has cited sector sources as saying Alexander Provotorov, CEO of Tele2 Russia and former head of Rostelecom, has been offered the role of second in command at T2 RTK Holding, in charge of operations.
According to the report, it has not yet been decided who will head the JV.
Separately, the Russian government is preparing to sell its majority stake in Rostelecom and has hired Sberbank to advise it on the transaction.