RDIF and Deutsche Bank invest $237.1m in Rostelecom

RDIF and DB will acquire 72,187,366 ordinary Rostelecom shares on a parity basis from the firm's subsidiary Mobitel. The investors now hold a joint 2.7% stake in the company.

The transaction includes agreements relating to call and put options, which will entitle Rostelecom to a portion of the profits from any value increase of the shares. In return, RDIF and DB will receive protection against a share price decrease.

The fresh capital will be used to strengthen and develop Rostelecom's position in the telecommunications market.

RDIF was founded in 2011 as a subsidiary of Vnesheconombank. The fund holds around $10bn, according to unquote" data. The vehicle secured $1.6bn from co-investors in 2012 while $1.5bn was committed through strategic partnerships with Kuwait and China.

In March this year, unquote" reported RDIF's aim to team up with German investors, with the firm expecting to see a fifth of all investments over the next 10 years coming from Germany.

Company
Rostelecom is a telecommunications provider based in Moscow.

The firm has 9.5 million broadband subscribers and more than 6.8 million users of Rostelecom pay TV. More than 1.7 million of those users watch the national channel, Interactive TV. Rostelecom also has 13.6 million mobile subscribers.

People
Kirill Dmitriev is the CEO of RDIF. Sergey Kalugin is the president of Rostelecom.

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