Rostelecom takes over 100% of Tele2 Russia

Rostelecom takes over 100% of Tele2 Russia

Russia’s Rostelecom is acquiring the 55% stake in Tele2 Russia that it did not already hold, meaning that it now holds 100% of shares in the unit.

The deal was signed on 12th February and finalised this month. Rostelecom acquired a 45% stake in Tele2 Russia for RUB108 billion (US$1.375 billion), with the remaining 10% obtained via a barter exchange for 10% of Rostelecom’s ordinary shares, previously held by its subsidiary Mobitel. The shares have a transaction value of RUB24 billion.

Former Tele2 shareholder VTB Bank, which already holds a 13.1% stake in Rostelecom, has acquired 29.4% of ordinary shares in the latter operator via a consortium. Other investors hold 16.3% of Rostelecom’s shares, while its majority shareholder is the Russian Federation.

Anna Shumeiko, senior VP of Rostelecom, said: ‘Tele2 Russia consolidation is a historic moment for the Russian telecommunications market and pivotal for Rostelecom. In the near future, we will be updating our key strategic priorities with an ultimate goal to increase Rostelecom’s fundamental value through providing cutting edge digital services to Russian households, business and state.”