Russian regional operator VolgaTelecom has launched a cash offer to buy alternative fixed-line operator Teleset Networks.
VolgaTelecom is offering US$0.8473 in cash for each Teleset shares, valuing the company at about US$133.5m.
Although the offer runs…
Russian regional operator VolgaTelecom has launched a cash offer to buy alternative fixed-line operator Teleset Networks.
VolgaTelecom is offering US$0.8473 in cash for each Teleset shares, valuing the company at about US$133.5m.
Although the offer runs for four months, Teleset shareholders have already agreed to sell 154,697,339 ordinary shares, representing about 98.19% of the company’s capital.
VolgaTelecom will cancel Teleset’s listing of shares on the AIM.
Teleset is an alternative fixed-line operator headquarted in the Republic of Tatarstan. Its current CEO, Yiannis Demetriou will remain in the company for several months in a consultancy capacity.
“This transaction in the best way fits OJSC VolgaTelecom’s strategy of active development in the segment of Internet broadband access, expansion to neighboring regions and strengthening the positions in fixed line telephony market,” said VolgaTelecom’s Board of directors chairman, Svyazinvest General Director Evgeny Yurchenko.
“The purchase of the Company completely agrees with Svyazinvest Group concept of creating a company-champion in telecommunications industry of Russia on the basis of consolidated OJSC Rostelecom,” he added.