CEO: Rostelecom to close deal on Tele2 consolidation by Mar

MOSCOW, Feb 5 (PRIME) -- Russian state-controlled telecom operator Rostelecom will close a deal to consolidate 100% in mobile operator T2 RTK Holding, working as Tele2, by the end of February, Rostelecom President Mikhail Oseyevsky told reporters on Wednesday.

“I think next week, (the February) 10 is the last day to exercise the preemptive right and then we’ll immediately…I think during a month,” Oseyevsky said.

Plans on implementation of the company’s strategy will be fulfilled by July, he said.

At present, Rostelecom holds 45% in Tele2 and the remaining 55% of the asset 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%.

The Tele2 deal comprises three stages and values 132 billion rubles. The first stage is acquisition of 10% in Tele2 by exchange of 10% of ordinary shares of Rostelecom, which are on the books of its unit Mobitel. The deal is cashless and values 24 billion rubles.

The second stage is acquisition of 27.5% in the mobile operator for cash received from sale of Rostelecom’s extra shares in favor of VTB Bank for 93.21 rubles per share. The amount of the deal is at 66 billion rubles.

The third part is acquisition of 17.5% for borrowed money. The amount of the deal stands at 42 billion rubles.

(63.4342 rubles – U.S. $1)

End