Rostelecom Finalizes Tele2 Stake Purchase

The biggest digital services provider in Russia, Rostelecom, has finalized the acquisition of a 55% stake in Tele2 Russia that it did not already hold, meaning that it now holds 100% of shares in the unit, reported.

The deal was signed in February and finalized this month. Rostelecom acquired a 45% stake in Tele2 Russia for 108 billion rubles ($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 24 billion rubles ($306 million).

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 currently 16.3% of Rostelecom’s shares, while its majority shareholder is the Russian Federation.

“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 the ultimate goal to increase Rostelecom’s fundamental value through providing cutting edge digital services to Russian households, business, and state,” said Anna Shumeiko, senior VP at Rostelecom.

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