ER-Telecom files application to buy into Akado

Russian service provider ER-Telecom has filed an application with the Federal Antimonopoly Service to acquire all or part of Akado, which is strong in the Moscow broadband and TV market, according to local reports.

A decision is expected in about a month. According to the reports, ER-Telecom is aiming to acquire 100% control of Akado.

The value of Akado has been estimated at between US$700-830 million (€535-635 million) including debt.

ER-Telecom, Russia’s number two broadband provider, has about 2.45 million revenue-generating units compared with Akado’s 770,000, which are, however, concentrated in the lucrative Moscow market where Akado is the number three player.

Akado posted revenues of RUB11.2 billion (€260 million) last year, with EBITDA of RUB4.22 billion.

Akado, majority-owned by Viktor Vekselberg’s Renova Media, has attracted interest from a number of other parties including, most recently, state railways-owned TransTeleCom.