Yota founders Sergei Adonyev and Albert Avdolyan plan to sell their 13.5 percent share in Garsdale Services, the company that owns Skartel and the Yota brand, in another development related to the Megafon-Yota merger, Vedomosti reported Tuesday.
The 13.5 percent of Garsdale belonging to the pair through equal shares in Telconet Capital, will be sold for about $1.8 billion, a source close to Skartel told Vedomosti. However, it is not clear whether the amount includes the $500 million company debt.
Garsdale fully owns Skartel with its brand Yota and 50 percent plus 100 shares of one of the country's largest mobile operators, Megafon.
For Adonyev and Avdolyan it is simply a convenient time to exit Garsdale, said Timur Nigmatullin, an analyst from Investcafe. It is likely that the deal directly relates to Megafon's decision to purchase Yota, he added.
It is likely that Megafon will buy Skartel from Garsdale, and the latter will use the funds to buy out Adonyev and Avdolyan, Vedomosti reported.
Megafon is considering the purchase of Skartel, which has already been given a green light by the Federal Antimonopoly Service.
The possible acquisition of Skartel by Megafon is to a large degree related to the Communications and Press Ministry's call to repossess the previously awarded LTE frequencies from operators because of their failure to deploy the prescribed amount of LTE-based services by the end of this year, Nigmatullin said.
Under the terms of the tender, telecom operators had to start offering the services in no less than eight regions by the end of 2013.
Because the country's four largest mobile operators are unlikely to meet the target, the Communications and Press Ministry wants to take away the LTE frequencies and award them to a single, state-run operator for subleasing and management.
When put together, Megafon and Yota would have deployed LTE-based services in 81 cities of 29 regions. This rate of deployment is far ahead of what was required by the ministry. Without Yota, Megafon would risk losing the frequency because it only deployed the service in one city, Yekaterinburg.
It is obvious that the purpose of the deal is to mitigate the risk of the confiscation of LTE frequencies, Nigmatullin said.
Megafon's board of directors is scheduled to meet Wednesday to discuss acquisition of Skartel, whose market value is estimated at about $1.5 billion, including debt.
Contact the author at g.moukine@imedia.ru
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
