Russia’s VTB Bank expects to receive around 17% of Rostelecom’s equity as part of a deal to sell its Tele2 Russia stake to the state-controlled telco, reports Reuters quoting VTB CEO Andrey Kostin.
In June the Cabinet of Ministers approved Rostelecom’s planned purchase of VTB’s Tele2 shares to give the national fixed line operator a majority holding in its mobile network associate. Rostelecom currently owns 45% of Tele2, whilst VTB holds 27.5%, Invintel (backed by Alexei Mordashov) 22.0% and ABR Investments (part of Rossiya Bank) 5.5%. VTB, Invintel and ABR hold their combined 55% via a joint holding vehicle.
Russian officials have said that Rostelecom could make part payment for 55% of Tele2 with its own shares, while newspaper Kommersant reported in July that Rostelecom could issue new shares as part of a cash and shares deal. Mr Kostin this week told reporters on the sidelines of an economic forum: ‘The additional share issue will be partly acquired by VTB Bank. As a result, the bank will become owner of about 17% of Rostelecom.’