ER-Telecom, AKADO merger back on the agenda; talks extended until year-end

22 Oct 2013

Russian cableco ER-Telecom has agreed to extend exclusive talks to buy Moscow-based AKADO Telecom until the end of the year, the two parties have confirmed. As recently as last week it was reported that the Moscow authorities had derailed the deal with regulatory red-tape, but it now seems that the deal is back on the table. In a joint statement released by ER-Telecom and AKADO owner Renova Media, the two parties say that they are looking to develop an ‘optimal model for the interaction’, without going into specific details.

In July this year ER-Telecom was granted permission from the Federal Antimonopoly Service (FAS) to acquire AKADO, in a deal worth up to USD1.01 billion, including debt. A tentative agreement between the pair was brokered in June, with ER-Telecom reportedly receiving its financing from VTB bank, TeleGeography’s GlobalComms Database writes.

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