We use cookies to deliver our online services. Details of the cookies we use and instructions on how to disable them are set out in our Cookies Policy. By using this website you agree to our use of cookies. To close this message click close.

Hogan Lovells Advises Rostelecom on its Acquisition of a Stake in National Telecommunications

08 February 2011

MOSCOW, 8 February 2011 - Transaction is the largest in Russia so far this year and a top ten deal in the Russian telecoms market over the past 12 months

Deal follows on from advising X5 Retail Group N.V., the retail branch of Alfa Group and Russia's largest retailer in terms of sales, on the acquisition of the Kopeyka retail chain for a total of RUR51.5 billion (US$1.65 billion) in December.

Hogan Lovells advised Rostelecom, a London listed key operating subsidiary of a Russian state owned telecom giant Svyazinvest, on its acquisition of a controlling stake in National Telecommunications (NTK). With the total value of $1.076bn this deal is one of the top 10 telecom deals in the Russian market in 2010-2011. The transaction completed on 4 February 2011. 

NTK is the largest independent cable TV operator and information provider in Russia. Rostelecom and its affiliates, Uralsvyazinform and North-West Telecom, acquired in total 71.8% stake in NTK from National Media Group, Surgutneftegaz and Raybrook Limited (a Severstal investment vehicle). This acquisition will enable Rostelecom to attain a leading position in the Russian pay-TV market.

A sophisticated transaction structure had to be developed to accommodate Rostelecom's plans to merger with other subsidiaries of Svyazinvest. The transaction will potentially involve Rostelecom's public offer to the remaining shareholders of NTK.

The Hogan Lovells team was jointly led by Oxana Balayan, Managing Partner and Co-head of corporate practice in Moscow, and Marina Ries, Senior Associate, and involved Richard Cowie (Counsel, corporate), Eugene Suslov (Senior Associate, commercial), Ekaterina Stepanisheva (Associate, corporate), Eugenia Ivanyuk (Associate, corporate) and Alexandra Dolinskaya (corporate).

Managing Partner in Moscow, Oxana Balayan, said:

"We have been fortunate in seeing a good stream of M&A activity in the Russian market with this and the recent X5 deal.  We are finding that clients and their financial advisers appreciate the depth of knowledge we have in Moscow combined with our recognized capabilities in London and New York.

We are delighted to have advised Rostelecom on this significant transaction which underlines its position of being on the leading edge of the rapidly developing telecoms market. This deal is a spectacular result of the team's dedicated efforts."

About Hogan Lovells

www.hoganlovells.com

Hogan Lovells combines the breadth of business-oriented legal advice and high-quality service that clients have come to expect through working with its two founding firms – Hogan & Hartson and Lovells.

"Hogan Lovells" or the "firm" refers to the international legal practice comprising Hogan Lovells International LLP, Hogan Lovells US LLP, Hogan Lovells Worldwide Group (a Swiss Verein), and their affiliated businesses, each of which is a separate legal entity. Hogan Lovells International LLP is a limited liability partnership registered in England and Wales with registered number OC323639. Registered office and principal place of business: Atlantic House, Holborn Viaduct, London EC1A 2FG. Hogan Lovells US LLP is a limited liability partnership registered in the District of Columbia.

The word "partner" is used to refer to a member of Hogan Lovells International LLP or a partner of Hogan Lovells US LLP, or an employee or consultant with equivalent standing and qualifications, and to a partner, member, employee or consultant in any of their affiliated businesses who has equivalent standing. Rankings and quotes from legal directories and other sources may refer to the former firms of Hogan & Hartson LLP and Lovells LLP. Where case studies are included, results achieved do not guarantee similar outcomes for other clients.

 
Loading data