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Articles & publications
20.05.2010
Rostelecom sends out applicationsVedomosti, Igor Tsukanov, Timofei Dzyadko
Rostelecom is preparing to purchase Comstar-UTS’s 25% + 1 share stake in parent company Svyazinvest. The company has applied to the Federal Anti-Monopoly Service (FAS) for permission to perform this transaction.
Rostelecom has filed an application with the Federal Anti-Monopoly Service to purchase a 25% + 1 share stake in Svyazinvest, a representative of the agency Sergey Noskovich said, and this statement was confirmed by a Rostelecom manager. This is the first step for the operator to prepare for a transaction with Comstar-UTS (controlled by AFK Sistema). Back in October 2009 Prime Minister Vladimir Putin approved in principle an agreement between AFK Sistema and the state, which provides for a blocking stake in Svyazinvest to be assigned by Comstar-UTS to Vnesheconombank (VEB). But the transaction was postponed and in order to expedite it in March 2010 the general director of Svyazomvest Evgeny Yurchenko proposed to the Telecommunications Ministry replacing the previous buyer with Rostelecom. This proposal was supported.
At the end of 2009 Ernst & Young estimated the value of a blocking stake in Svyazinvest at RUR 26 bln. In order to finance the transaction the national LD operator plans to issue bonds worth RUR 30 mln. The term of the bond placement will be at least 5 years with a yield of no more than 7%, Yurchenko told Vedomosti. But the deal between Comstar and Rostelecom should be finalized before the end of June (otherwise a new appraisal will have to be made), and Rostelecom might not have time to launch the bond placement. One other option would be to attract a credit which could be refinanced using a bonded loan, a representative of Rostelecom said. In his opinion, the operator has already sent out applications to banks for a RUR 26 bln. For example, Alfa Bank received this application and will definitely take part in the tenders, according to its head of development for large corporate clients, Alexei Zotov.
This is standard procedure for companies that require funds urgently, says Bank of Moscow analyst Leonid Ignatiev. A bridge loan is usually drawn from the arranger of a bonded loan for several months. He advises Rostelecom not to rush into a bond placement since markets are in wait-and-see mode right now due to havoc in the euro zone.
Cost savings
2.45x – this is how much MGTS’s RAS net profit went up in full-year 2009, reaching a total of RUR 7.9 bln. The reasons for this performance include cost-cutting, a customer loyalty program, as well as the revaluation of assets, according to the financial director of MGTS Dmitry Sharovatov.
The Board of Directors of MGTS is scheduled to discuss dividend payment recommendations at the end of May. According to the charter of MGTS, the holders of preferred shares can expect to receive at least 10% of net profit. Svyazinvest, with a 23.3% stake in the company, expects the holders of common shares to receive another 15%, says a representative of the holding, Igor Pshenichnikov.
Svyazinvest, holding company. Shareholders – Federal Property Management Company (75% - one share), Comstar (25% + 1 share). Financial indicators (2009 aggregated RAS data): revenue – RUR 258.8 bln, net profit – RUR 28.5 bln.
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