VTB to Sell Controlling Stake in Tele2 Russia - Report

By Olga Razumovskaya

MOSCOW--VTB Bank (VTBR.RS), Russia's second-biggest lender, plans to sell a controlling stake in the local unit of Swedish company Tele2 AB (TEL2-B.SK), Prime news agency reported the bank's head as saying Tuesday.

Andrei Kostin said the bank may retain a minority of shares for a private equity deal in two to three years. VTB Bank bought the Russian branch of Tele2 just two months ago.

"We are considering this deal as a financial investment and intend to within a year sell the controlling stake while possibly retaining a minority stake for a private equity deal in the medium-term prospective - two-three years," Mr. Kostin said.

"I think that in the future the deal may have many forms: possibly part of the shares will be sold to strategic or financial investors, part of the stake may be sold through an IPO," he said.

Many telecoms experts belive that Tele2 Russia will be sold to the state-controlled telecoms company Rostelecom (RTKM.RS) whose former chief executive recently headed Tele2 Russia.

Agency website: 1prime.ru

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