RDIF and Deutsche Bank Agree to Buy into Rostelecom
All the necessary approvals between the interested parties have been attained for the 7.674 billion rouble (US$ 237.5 million) transaction.
The transaction fulfills both mandates of the US$ 13 billion sovereign wealth fund: 1) Center on direct investments in Russia, 2) co-invest with a large global partner.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund, sees the share purchases as a strategic investment in a booming sector. “Sustained growth in the Russian economy means demand among consumers and businesses for reliable and ultra-fast broadband will continue to increase,” he said. “It is therefore the right time to invest in the telecommunications sector.”
Sergey Kalugin, President of Rostelecom, is excited about the prominence of the two large firms and sees their participation as a catalyst for more high profile investors. “Attracting long-term partners is a key part of Rostelecom’s strategy to successfully achieve its ambitious goals and, I hope, will serve to attract other qualified investors,” he stated.
Rostelecom is traded on the MICEX.
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