Russian telecoms holding company Svyazinvest has reached an agreement to acquire regional pay-TV and broadband operator Akado from private equity investor Renova Media Enterprises, reports Kommersant. Svyazinvest has been looking to enter the Moscow pay-TV market for some time, and the acquisition of Akado offers a timely solution. TeleGeogrpahy’s GlobalComms database shows Akado had an estimated 670,000 broadband subscribers as at June 2010, 600,000 of which are situated in Moscow. According to reports, Akado has 446,000 pay-TV subscribers, 423,000 of which are based in Moscow.
The acquisition will be carried out through Svyazinvest’s subsidiary, regional operator CenterTelecom. Svyazinvest is likely to acquire a 50% stake of Akado during the initial stage, whilst the rest of the shares are expected to be acquired within two years by another Svyazinvest subsidiary, Rostelecom, after its ongoing restructuring process is complete. The value of the deal is estimated at between USD630 million and USD650 million.