Russian national operator Rostelecom PJSC has agreed to buy the remaining 55% stake it did not already own in mobile operator Tele2 Russia for an undisclosed amount.
Rostelecom is acquiring the stake from an investor group composed of Russian state-owned bank VTB Bank PJSC Invintel BV and ABR Investments BV, according to S&P Global Market Intelligence data.
Tele2 Russia will continue operating separately from Rostelecom after the deal's completion, Telecompaper reported, quoting Rostelecom CEO Mikhail Oseevskiy.
VTB Bank's parent entity VTB Group fully acquired Tele2 Russia from Swedish operator Tele2 AB in April 2013 as a private equity investment. In October 2013, VTB Group sold a 50% stake in Tele2 Russia to a group of strategic investors, including Bank Rossiya and entities controlled by Russian businessman Alexey Mordashov.
In 2014, Tele2 Russia and Rostelecom's mobile assets were merged into a single entity named T2 RTK Holding, which continued operating under the Tele2 brand. Rostelecom owns 45% of T2 RTK, with the VTB Group-led consortium holding at least 55%.