Russian operator Rostelecom could transfer control of its mobile operation to VTB and Bank Rossiya, the two banks that own Tele2 Russia.
If the deal goes through, the banks are expected to merge Rostelecom’s assets with those of Tele2 Russia. Rostelecom would then be awarded a stake of between 40 and 49% in the resulting entity. The other 51-60% of the combined firm would go to VTB and Yuri Kovalchuk, the controller of Bank Rossiya.
Kovalchuk and Russian tycoon Alexei Mordashov between them acquired half of Tele2 Russia’s assets from VTB last month. VTB, which is controlled by the state, bought Tele2’s operations in Russia for $3.55 billion in April.
