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Sunday, August 25, 2019

VTB announces next phase of successful investment in Tele2 Russia

VTB Group and its partners, Bank Rossiya and entities controlled by Alexey Mordashov, recently announced the merger of the mobile assets of Tele2 Russia with the mobile assets of Rostelecom into a single company, T2 RTK Holding.

The mobile operator will continue to operate under the Tele2 brand. VTB and its partners will own at least 55 percent of the new company, with Rostelecom having a 45 percent stake.

During the first phase of the integration, Rostelecom will transferal its mobile subsidiaries - including SkyLink, Nizhegorodskaya Sotovaya Svyaz, Baikalvestcom, BIT, Volgograd GSM, Yenisey Telecom and AKOS - to the new company. In the second phase, Rostelecom will transfer its integral mobile assets.

The new company will provide services in more than 60 regions across Russia to a subscriber base of about 38 million people.

The agreement will allow Tele2 Russia to gain licenses to expand mobile coverage across all 83 regions of Russia, including Moscow, and to provide a wide range of services, including high-speed mobile internet access.

"Tele2Russia has built an efficient and very profitable business, which has been a successful investment for VTB Group. The Tele2 management team will continue to develop the new, joint company. The creation of a new national operator will play a vital role in the development of Russia's telecoms market, offering users additional choice and providing access to high-quality and affordable mobile and internet connections," Yuri Soloviev, the first deputy president and chairman of the VTB Bank management board, said.