TTK aims to sell consumer division by end of October

14 Jul 2021

Russia’s fifth largest broadband network operator by subscribers, TransTeleCom (TTK), is aiming to sell its entire residential (B2C) operations via auction by the end of October this year, with a starting price of RUB8.9 billion (USD120 million), reports ComNews, adding that the minimum bid ‘may rise significantly depending on the conditions for using the backbone infrastructure of TTK and the buyer’s network architecture.’ TTK – wholly owned by state railway firm Russian Railways – has hired investment bank VTB Capital to organise the sale of its B2C division held via two subsidiaries, TTK-Svyaz and Zap-SibTranstelecom. TTK registered TTK-Svyaz in August 2020 and by February 2021 had transferred retail assets to it throughout the Federation except for Western Siberia where the assets are retained by Zap-SibTranstelecom.

VTB Capital is accepting applications between 12 July and 11 October requiring a deposit of RUB890 million, ahead of an auction scheduled for 25 October. The sale will allow TTK to concentrate on its wholesale/corporate/government client operations, based on its 78,000km-plus nationwide and international fibre backbone infrastructure. TTK’s website currently lists 322 cities/towns across various regions in which its retail broadband services are available, up from 321 counted in TeleGeography’s GlobalComms Database in April this year, and 319 in April 2020. TTK’s total annual revenues including B2C/B2B/B2G/B2O operations reached RUB23.9 billion in 2020, up from RUB23.5 billion in 2019.

Russia, TransTeleCom (TTK)