CEO: Rostelecom hopes to finish Tele2 consolidation in Q1 2020

SOCHI, Oct 17 (PRIME) -- Russian state-controlled telecom operator Rostelecom plans to close a deal on consolidation of 100% of mobile operator T2 RTK Holding, working as Tele2, in January–March 2020, Rostelecom President Mikhail Oseyevsky told reporters on Thursday.

Rostelecom filed the documents to receive all kinds of directives necessary for approval of the deal, and they are “at a working stage” with the ministries and the government, Oseyevsky said.

The executive said earlier Rostelecom expected to get all directives in late October.

President Vladimir Putin earlier signed a decree allowing Rostelecom to raise its 45% in T2 RTK Holding to 100%. The remaining 55% belong to Tele2 Russia Holding AB, a consortium in which VTB Bank has 50%, Alexei Mordashov’s Invintel B.V. has 40%, and Yury Kovalchuk’s Bank Rossiya has 10%.

According to the document, Rostelecom will issue extra shares for the deal. VTB Bank will buy the shares, while the government jointly with VTB Bank and state development bank VEB.RF must keep control of more than 50% of common stock of Rostelecom, and the country’s share must be at least 33.2%.

Oseyevsky said earlier that any current shareholder is entitled to buy new shares.

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