Rostelecom and Tele2 to Merge Russian Mobile Assets
Published on: 15th Dec 2013
By: Ian Mansfield
Russia's state controlled telecoms network Rostelecom has approved plans to merge its mobile assets with Tele2 Russia to form a new company.
Rostelecom said that the new company, T2 RTK Holding will become a leading player in the Russian mobile market, with strong positions in the current regions of presence of Rostelecom and Tele2 Russia, and access to spectrum for next generation mobile services across all federal regions of Russia.
T2 RTK Holding will have a subscriber base of approximately 38 million customers.
Rostelecom will contribute substantially all of its mobile assets and licenses to T2 RTK Holding, while Tele2 Russia will contribute all of Tele2 Russia's mobile assets.
The contribution from Rostelecom will be effected in two stages. The first stage will see Rostelecom contributing its standalone mobile subsidiaries and assets, including SkyLink, into T2 RTK Holding. At the end of this first stage, Rostelecom will receive a 45% voting interest and a 26% economic interest in T2 RTK Holding.
During the second stage, Rostelecom will spin off its integrated mobile businesses into its new wholly owned subsidiary CJSC RT-Mobile which will be expected to have Rostelecom's mobile licenses (including the LTE licenses) re-issued to it. Upon completion of the spin-off, Rostelecom will contribute its whole stake in CJSC RT-Mobile into T2 RTK Holding and increase its economic interest in T2 RTK Holding to 45%.
The transaction was approved by Rostelecom's board of directors and is subject to regulatory approvals as well as other customary conditions precedent.
Sergey Kalugin, President of Rostelecom commented, "We are delighted to have reached an agreement with Tele2 Russia to create a new national mobile operator, with tremendous growth opportunities and exciting prospects. With support from both shareholders, T2 RTK Holding is set to be a story of great success."