The Russian government reportedly may choose to alleviate military concerns about Rostelecom falling into foreign ownership by selling its controlling stake to the nation’s three largest operators.
Russian daily Kommersant cited an unnamed senior…
The Russian government reportedly may choose to alleviate military concerns about Rostelecom falling into foreign ownership by selling its controlling stake to the nation’s three largest operators.
Russian daily Kommersant cited an unnamed senior government source as saying that while the government would like to create a strong fourth player in the market, it may opt for the “alternative scenario” of selling Rostelecom as a platform for the so-called Big Three, news agencies reported.
MTS, MegaFon and VimpelCom are Russia’s largest operators.
According to the report, the government believes that, even if foreign investors are barred from buying its Rostelecom shares, it can still raise about US$5bn from the sale.
The telcos have declined to comment on the matter.
The government holds a 55.17% stake in Rostelecom via telecoms holding company Svyazinvest, with which the telco is being merged, the Federal State Property Management Agency (FSPMA) and Vnesheconombank (VEB).
Speculation about if and when Rostelecom will be privatised is ongoing. In late May, the Ministry of Economic Development included the Moscow-based telco in a list of planned privatisations through to 2016, saying it wants to sell its entire stake by the end of 2014.
However, Russian business paper Vedomosti reported yesterday that the government now intends to extend the timetable of its privatisation programme and hold on to some assets for longer. According to this report, the state wants to exit Rostelecom by 2016.
There has also been considerable speculation about a merger between Rostelecom and mobile operator Tele2 Russia, bought by state-controlled banking group VTB earlier this year in a deal worth US$3.55bn.
In late April, the head of Russian antitrust authority, the FAS, said he liked “the idea” of a Rostelecom-Tele2 Russia tie-up as it would create a powerful fourth player in the market. FAS has previously said it would not welcome a merger between Rostelecom and one of the Big Three.
Meanwhile, a Rostelecom spokesperson confirmed recent reports that the company is exploring different opportunities to cooperate with Tele2 Russia, which include a possible MVNO agreement. Discussion on the MVNO is at a preliminary stage and, as top managers are not yet involved, it is too early for the company to comment further on the matter, the spokesperson said.
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