Hogan Lovells Advises Rostelecom on its Acquisition of a Stake in National Telecommunications
08 February 2011
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."
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