Svyazinvest poised to acquire Severen Telecom

14 Jul 2010

North-West Telecom (NWT), a subsidiary of Svyazinvest, has filed a motion with the Federal Anti-Monopoly Service (FAS) regarding its planned acquisition of Severen Telecom. Severen, a corporate fixed line telecom company operating in St Petersburg and Leningrad, provides broadband services to approximately 2,700 corporate customers, accounting for an 8%-10% share of the regional market. The acquisition of Severen is intended to enable NWT to strengthen its position in the regional high speed internet market. The parties have already signed a memorandum of intent and Severen Telecom is currently undergoing due diligence. The transaction could be finalised as soon as Q3 2010 and is estimated to be worth in the region of RUB1 billion (USD32.6 million).

Russia, North-West Telecom (NWT), Svyazinvest