FAS approves ER-Telecom-AKADO merger

25 Jul 2013

Perm-based ER-Telecom has reportedly been granted permission from the Federal Antimonopoly Service (FAS) to acquire Moscow-based AKADO Telecom, in a deal worth up to USD1.01 billion, including debt. The development was confirmed to the Tass news agency by Dmitry Rutenberg, the head of control of transport and communication at the FAS, though he declined to provide any specific information about the deal. A tentative agreement between the two parties was reportedly brokered in June, with ER-Telecom reportedly receiving its financing from VTB bank.

According to TeleGeography’s GlobalComms Database, AKADO is majority-owned by US-based firm Moscow CableCom Corp (MOCC) which has itself been wholly owned by Russian private equity investor Renova Media Enterprises since July 2007. Renova holds a 67% stake in the business, while the telco’s chairman Yuriy Pripachkin is thought to hold the remaining 33%.

Russia, AKADO Telecom, ER-Telecom (Dom.ru)