VTB Capital, the investment banking arm of Russian state-owned VTB Bank, has purchased a minority stake in the country’s largest satellite broadcaster Tricolor TV.
Financial details were not disclosed and VTB Capital was not available for comment at…
VTB Capital, the investment banking arm of Russian state-owned VTB Bank, has purchased a minority stake in the country’s largest satellite broadcaster Tricolor TV.
Financial details were not disclosed and VTB Capital was not available for comment at the time of going to press.
Commenting on the transaction, Tim Demchenko, global head of private equity and special situations at VTB Capital, noted: “Investment in Tricolor TV is one more step in implementing VTB Capital’s private equity strategy to invest in consumer-related industries in Russia. We believe its strong market position and countrywide footprint will enable the company to capitalize on opportunities in rapidly growing Russian pay-TV market and successfully complete an IPO in the next few years.”
This view was echoed by Alexander Makarov, CEO of National Satellite Company, the parent company of Tricolor TV. Makarov said: “Partnership with VTB Group is a strategic step which will allow the company to get prepared for the next level of its development.”
Launched in 2005, Tricolor TV is currently the largest pay-TV provider in Russia with a subscriber base of over 12.4 million registered subscribers and 9.12 million paying subscribers as of 25 March 2013.
Back in June 2012, local reports claimed that an unnamed shareholder in the DTH provider was seeking regulatory approval to increase its stake by 50% to 87.4%. However, the speculation was never confirmed.
The previously listed owners of the company were Ziaida Tolpekina and Olga Orlova with a 50% share each, but the reports claimed that according to a Federal Antimonopoly Service filing the company is now broken up into 50%, 37.4% and 12.6% stakes.
Gazprom-Media, which had previously attempted to buy a controlling stake in Tricolor back in 2009, was named as the potential mystery shareholder but would not comment on the speculation.
