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Rostelecom signs legally binding deals to consolidate Tele2

MOSCOW, Feb 12 (PRIME) -- Russian state-controlled telecom operator Rostelecom has signed legally binding agreements on acquisition of 55% in mobile operator T2 RTK Holding, working as Tele2, in which Rostelecom already owns 45%, with VTB Bank and a consortium of investors, the state company said on Wednesday in a statement.

УSettlements and a transfer of ownership under the deal on consolidation of 100% in Tele2 are to be completed within a month,Ф the statement read.

Under the deal, the contracts were signed to swap 10% of Tele2 for 10% of ordinary shares of Rostelecom, which are currently on the books of its unit Mobitel and for the sale of 45% in the capital of Tele2, and others.

Rostelecom is to buy 17.5% in Tele2 for 42 billion rubles in cash and 27.5% for 66 billion rubles in cash received through an additional share issue in favor of VTB Bank at 93.21 rubles per share.

Before the deal, 55% of the asset belonged to Tele2 Russia Holding AB, a consortium in which VTB Bank had 50%, Alexei MordashovТs Invintel B.V. had 40%, and Yury KovalchukТs Bank Rossiya had 10%.

After the issue the number of ordinary shares in RostelecomТs capital increased by 708.083 million to 3.283 billion. VTB Bank received 21.56% of ordinary shares of Rostelecom, and in addition to the swapped 10%, the bank will have 31.56% in the state operator.

According to the presidentТs decree, VTB and state development bank VEB.RF must control more than 50% of ordinary shares of Rostelecom after the deal.

Before the deal, the government owned 45.04% in Rostelecom, VEB.RF had 3.96%, Mobitel had 12.01%, and 38.98% were in free float.

(63.9490 rubles Ц U.S. $1)

End

12.02.2020 12:27
 
 
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