Russian Railways to sell just under 50% of TTK

12 Nov 2013

State-owned Russian Railways plans to sell a 50% (minus two shares) stake in its telecoms unit TransTeleCom (TTK) by 2015. According to Kommersant the proposed sale was raised in the company’s investment plan for 2014-2016. The stake is expected to be valued at RUB37.5 billion (USD1.1 billion), with the Russian Direct Investment Fund (RDIF) already named as a likely buyer.

According to TeleGeography’s GlobalComms Database, long-distance operator TTK was first established in 1997 to deploy backbone infrastructure along the national rail network while strengthening the country’s international connectivity through gateways in: the North-West – St Petersburg, connecting with Finland and Denmark; the East – Khabarovsk, Vladivostok and Nakhodka, China, Japan and South Korea; and the South – Novorossiysk, Turkey and Italy.

The RDIF is a USD10 billion fund that was established by the Russian government in June 2011 with a view to making equity investments in high-growth sectors of the Russian economy.

Russia, TransTeleCom (TTK)