Russian national operator Rostelecom announced that its management board has approved the acquisition of the remaining 55 percent in the mobile operator Tele2 Russia. The deal will enable the operators to join infrastructure and resources for 5G development in the country. Around 70 percent of the purchase price will be paid through share swaps.
The deal will be carried out in three parts. The first is the acquisition of a 10 percent stake in Tele2 Russia in exchange for a 10 percent stake in Rostelecom owned by the company Mobiltel, a subsidiary of Rostelecom. This transaction is valued at RUB 24 billion.
The second part is the acquisition of a 27.5 percent stake in Tele2 Russia using funds from a share issue by Rostelecom. The shares will be placed for VTB Bank at RUB 93.21 per share, in a deal worth in total RUB 66 billion.
The third part of the deal is the acquisition of a 17.5 percent percent stake in Tele2 Russia using existing liquidity, for RUB 42 billion.
Rostelecom said that Tele2 Russia will continue acting as a separate legal entity under its own brand after the acquisition. The national operator plans to refresh its strategy in the first half of 2020.
