Rostelecom/Tele2 JV gets permission to acquire 100% of Rostelecom subsidiary in Bashkortostan
MOSCOW. April 4 (Interfax) - Russia's Federal Anti-monopoly Service (FAS) has approved the application made by T2 Rus Holding, around which a cellular communications joint venture between Rostelecom and Tele2 Russia is being set up, to acquire 100% of OJSC Cellular Communications of Bashkortostan (Sotel), a FAS statement says.
Cellular Communications of Bashkortostan is one of the cellular assets Rostelecom is obligated to contribute to the JV. Rostelecom has already transferred its mobile subsidiaries Sky Link, Nizhny Novgorod Mobile Networks, Baikalvestkom, BIT, Volgograd GSM, Yeniseitelecom and AKOS, along with infrastructure in regions where networks are being built, including Moscow and St. Petersburg, to LLC T2 RTC Holding. Upon the completion of this first stage, Rostelecom acquired 45% of voting rights and a 26% economic interest in the venture.
The second stage, involving the transfer of Rostelecom integrated mobile assets to the venture, is expected to be concluded by the end of this year. RT Mobile, a wholly owned Rostelecom subsidiary to which federal LTE licenses (2.3-2.4 GHz, 800 MHz and 2.5-2.7 GHz), the mobile business in the Urals, equipment and contracts will be transferred, is expected to be registered on April 1. After the completion of the second stage, Rostelecom will still have 45% of voting rights but its economic interest in the venture will also increase to 45%. The shareholders of Tele2 Russia - state lender VTB , Rossiya Bank and steel magnate Alexei Mordashov - will have a 55% controlling interest in T2 RTC Holding.
Sotel is not in the first wave of the asset-transfer scheme nor in the scheme for the spinning off and transfer of assets to the JV in the second stage.
"Approval by the FAS is the initial step. Completing the deal will require corporate approval procedures to be carried out at Bashinformsvyaz - including consideration by the board of directors (on which the main shareholders are represented), Rostelecom representative Valery Kostarev told Interfax, without saying when those procedures might take place.
Cellular Communications of Bashkortostan is a wholly owned subsidiary of Bashinformsvyaz, in which Rostelecom owns just 68.18% of capital. The Bashkortostan Property Ministry and other entities hold the remaining stock. The ministry holds a 17.84% stake. No decisions have yet been made for Rostelecom to consolidate 100% of Bashinformsvyaz, and the state telecommunications operator has to secure the permission of all the Bashkortostan company's owners to transfer Sotel to the JV with Tele2.
