Connect with us

International Circuit

Russian mobile operator MTS postpones tower sale indefinitely

Russia’s biggest mobile operator, MTS is indefinitely postponing the sale of its tower assets, the Kommersant daily reported on Tuesday, citing sources, as Moscow’s actions in Ukraine spill into the domestic M&A scene.

Chief Executive Vyacheslav Nikolaev in November said MTS may sell its tower assets, following an industry-wide trend of telecoms firms cashing in on the money-making power of masts.

But the industry is one of many in Russia now facing supply constraints and equipment headaches.

One source told Kommersant that MTS had planned to finalise the deal in the first half of this year, but the worsening economic situation caused by the conflict in Ukraine meant no one was currently able to buy the MTS tower portfolio.

“We are continuing to look at different scenarios, we see interest in the asset and are in contact with potential investors,” MTS said in a statement.

Kommersant mentioned investment firm Kismet Capital Group and independent tower company Service-Telecom as two buyers linked to the deal.

A Service-Telecom representative said it was continuing all communications related to implementing its M&A strategy.

“In this process we are taking into account the current macroeconomic conditions, which at the moment are impacting the dynamics and subject of talks,” the representative said.

Kismet Capital Group did not immediately respond to a request for comment.

Kismet finalised a deal in January to expand its tower portfolio, while telecoms firm Veon VON.AS, whose primary market is Russia, late last year finalised a $970 million deal to sell its portfolio to Service-Telecom.

Service-Telecom said it was fulfilling all agreements with Veon and implementing its construction plan in full across the country.

Independent tower companies are keen to access the steady, inflation-linked returns antenna-topped towers generate. Other telecoms players have sought to create separate tower units as a way of keeping a chunk of potential future growth. Nasdaq

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2022 Communications Today

error: Content is protected !!