Tele2 Russia snaps up Voronezh-based Kodotel

25 Jun 2013

Tele2 Russia has announced that it has acquired regional mobile provider Kodotel, which is headquartered in the city of Voronezh, located 500km south of Moscow. The cellco provides GSM services using the 1800MHz spectrum band, and claimed around 100,000 subscribers at the time of the transaction. Tele2 anticipates that the full integration of Kodotel will occur before the end of 2013. The price of the deal has not been disclosed.

TeleGeography notes that the acquisition of Kodotel represents the first such deal since Tele2 was taken over by the VTB Group in March this year. VTB bought 100% of the shares in Tele2’s Russian business for USD2.4 billion in equity value and USD1.15 billion in net debt, but industry insiders expect the financial institution to sell the firm on to another party in due course, with Rostelecom deemed the most likely buyer.

Russia, Tele2 Russia