VolgaTelecom’s takeover of Teleset accepted by 98% of shareholders

28 May 2010

Russian state-controlled telecoms group Svyazinvest has announced that its regional unit VolgaTelecom has agreed to buy Teleset Networks, a fixed line operator in the Republic of Tartarstan in the Volga region, in a deal worth USD133.5 million. The offer was conditional upon it being accepted the holders of at least 90% of Teleset’s share capital, and as of 27 May VolgaTelecom received acceptances in respect of a total of 154,697,339 ordinary shares, representing 98.19% of equity. Settlement is expected to be made on 3 June 2010, at which point VolgaTelecom will take unconditional control of Teleset; for remaining non-transferred shares, the offer will remain open for four months, closing on 27 September 2010. The deal already has Russian regulatory approval. At the end of 2009 Teleset had 161,300 telephone subscribers and more than 44,900 broadband subscribers, with FY2009 revenues flat in USD terms at USD30.9 million; its pre-tax profit improved from USD11.9 million to USD12.7 million in the year.

Russia, Svyazinvest, VolgaTelecom