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Deutsche Bank, Russia fund to invest in Rostelecom
2013-10-11 09:58:00| Telecompaper Headlines
(Telecompaper) The Russian Direct Investment Fund (RDIF) and Deutsche Bank announced a joint investment in Russia's national telecom operator, Rostelecom. The two parties will invest a total of RUB 7.674 billion on a parity basis, which will be used to further develop and strengthen the company's market position. All boards have approved the deal. The investors will acquire 72.2 million shares in Rostelecom from its subsidiary Mobitel. The deal also includes call and put options giving Rostelecom a portion of any profits from an increase in value of the shares. As part of the same terms the investors will receive protection against a decrease in the price of the shares. RDIF, a subsidiary of Vnesheconombank, said the Russian economy and its growing demand for broadband offer a good opportunity for investment. The deal also capitalizes on the recent changes in Rostelecom's corporate governance and development strategies, following its merger with the state telecoms holding company Svyazinvest.
Tags: bank
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Category:Telecommunications