ER-Telecom purchase of AKADO units approved; clears path for Rostelecom-AKADO talks?

17 Aug 2017

Russia’s Federal Antimonopoly Service (FAS) has granted the request of the country’s second-largest fixed broadband provider ER-Telecom (Dom.ru) to proceed with the 100% acquisition of two regional subsidiaries of cable broadband operator AKADO, Akado-Ekaterinburg (Yekaterinburg) and TKS Neva (St Petersburg), reports ComNews. Local analysts quoted in the report gave estimates for the price of the Yekaterinburg firm ranging between RUB500 million and RUB1 billion (USD8.4 milllion-USD16.8 million) whilst the St Petersburg cableco was estimated to be worth RUB190 million-RUB200 million. According to Russian-based TMT Consulting, AKADO’s Yekaterinburg/St Petersburg units account for approximately 85,000 internet users and 135,000 pay-TV subscribers between them.

According to local sources cited in recent reports, AKADO’s 100% parent Renova has entered merger talks with Russia’s largest fixed network operator Rostelecom under a non-disclosure agreement, and the completion of the sale of AKADO’s Yekaterinburg and St Petersburg subsidiaries could help move negotiations towards a potential deal.

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