Publish Date : 09-May-2016
ER-Telecom, a cable TV and fibre broadband services provider of Russia, is reportedly ready to offer bid for the acquisition of the whole stake of WestCall, thanks to the Federal Antimonopoly Service (FAS).
The FAS has cleared ER-Telecoms proposal to buy 100% interest of St Petersburg-based telecom firm WestCall.
There are also reports that the Perm-based Russian cable TV and fibre broadband operator has been planning to place an offer for the entire WestCall group.
The WestCall group also operates branches in Moscow (metropolitan), Moscow region, St Petersburg/Leningrad region, Ryazan, Volgograd, Tolyatti and Samara.
WestCall, a provider of telephony, broadband, IPTV and corporate data services, serves around 85,000 residential customers and 10,00 corporate customers in St Petersburg area.
The WestCall group has an estimated 350,000 residential subscribers and 25,000 business users.
The acquisition value for the St Petersburg division is estimated to be about RUB900 million (USD13.7 million) plus debts, while the approximate cash purchase value for the wider group stands at RUB2.5 billion.
There are several past instances in Russia where the FAS allowed numerous bidders to move ahead with their takeover bids instead of permitting any precise bidder for a target company.
Several other leading Russian telecom companies comprising Rostelecom, VimpelCom (Beeline) and MegaFon have showed their willingness in West Call as well.
ER-Telecom serves the residential and corporate fixed broadband/pay-TV market segment across 56 cities covering 36 regions in Russia.
The company, with more than 3 million fixed broadband subscribers, is the second largest player in the segment only after Rostelecom, while MTS takes the third place in this market segment.
The group, with existing footprint in the St Petersburg area, had accomplished the acquisition of InterZet, a St Petersburg-based provider of broadband services, in January 2014.
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