Putin clears Rostelecom to raise stake in Tele2 to 100% from 45%

MOSCOW, Oct 4 (PRIME) -- Russian President Vladimir Putin has signed a decree allowing state-controlled telecom operator Rostelecom to raise its stake in mobile operator T2 RTK Holding, working as Tele2, to 100% from 45%, according to the decree seen by PRIME on the portal of legal information late Thursday.

“To accept the proposal of the government of the Russian Federation on the increase of a share of Rostelecom and its unit Mobitel in the charter capital of T2 RTK Holding to 100%,” the decree read.

At present, Rostelecom owns 45% in Tele2 and 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, VTB Bank will purchase additional common shares of Rostelecom, and the government jointly with the bank and state development bank VEB.RF must keep control over more than 50% of common shares of Rostelecom. The size of the additional share offering is not disclosed.

VTB Bank head Andrei Kostin said in September that the bank would sell its stake in Tele2 to Rostelecom by the end of the year and receive some 17% of Rostelecom. Media reported that the bank’s stake in Rostelecom could be higher, because up to 10% of the company could have been purchased in the bank’s interests over the recent year.

Under the decree, the government is to take measures during six months to ensure the purchase of 55% of Tele2 and the extra share offering. The current agreement between the government and VEB.RF on management and voting with Rostelecom’s shares is to be maintained.

An agreement must also be signed with VTB Bank to ban it from selling a part of the purchased Rostelecom shares for four years from the date of the deal. Rostelecom must have a preemptive right to buy back its shares.

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