news

Advance Capital is pleased to announce the sale of a 100% stake in Teleset Networks PCL (TNW: LN) to VolgaTelecom, a member of Svyazinvest, Russia’s largest telecommunications holding.

Teleset Networks PCL is one of the largest alternative telecommunications operators in the Volga region, serving more than 160 thousand fixed-line telephony subscribers and approximately 45 thousand broadband internet subscribers in Kazan, Naberezhnye Chelny and Ulyanovsk. The company is publicly listed, with its shares traded on the AIM market of the London Stock Exchange since 2006.

As part of the deal, shareholders of Teleset Networks PCL were offered to sell their shares at a price of USD 0.8473 per share, implying an equity value of USD 133.5 million for 100% of the company. The offer was accepted by holders of 98% of the shares, and the buyer plans to increase its stake to 100% going forward. The deal enables VolgaTelecom to enter the Republic of Tatarstan, one of the largest and most attractive telecommunications markets in Russia, where the company had previously been present only in the mobile segment.

Advance Capital acted as the exclusive financial advisor to the sellers, including investment funds and portfolio investors.

The deal value is USD133.5 million.