Russian bank VTB has confirmed it plans to sell a stake in mobile operator Tele2 Russia to a group of three or four private investors in the next few weeks.
The bank, which acquired the mid-sized telco from its Swedish parent for US$3.55bn in March, has…
Russian bank VTB has confirmed it plans to sell a stake in mobile operator Tele2 Russia to a group of three or four private investors in the next few weeks.
The bank, which acquired the mid-sized telco from its Swedish parent for US$3.55bn in March, has also revealed a strategy to take the company public within the next three years. Until this time, VTB said it will retain a minority share of no less than 20% in the firm.
Although a spokesperson for the bank would not name the three or four new private equity partners being brought in, he said they would not be firms linked to the three major players in the Russia telecom market – MTS, MegaFon and Beeline.
Citing local sources, local newspaper Vedomosti reported last month that Russia’s fifth-largest Rostelecom had hired JP Morgan, Credit Suisse and PwC to advise it on a possible deal with Tele2 Russia.
There have been talks over a possible tie-up with rival Rostelecom for some time, as many sector analysts feel some form of merger would be the only way for the two firms to survive long term.
A Rostelecom-Tele2 tie up would create the fourth-largest player in the mobile market in Russia and the leader in the overall telecoms sector.
