“Er-telecom” acquires 100% of the top Novosibirsk provider “Novotelecom”

Er-telecom
Er-telecom

“Er-telecom” holding closed the transaction on acquisition of the Novosibirsk provider of broadband Internet access “Novotelecom” (TM “Electronic-city”). The deal increases the number of “Er-telecom” subscribers by 10%.

Earlier Federal Antimonopoly Service (FAS) has granted permission on the acquisition to the holding company. The transaction amount was not specified but experts estimated it at 2 billion rubles.

In 2011 “Beeline” tried buy “Novotelecom” but due to the excessive amount of the transaction agreement could not be reached. In 2013 land-line operator “Netbynet” (TM WiFire) declared of intent to buy the company but then the deal did not materialize because of the same reason.

“Er-telecom” — the second lagest operator of broadband access in Russia by subscribers quantity. The company provides services of Internet access, cable television, IP-telephony in 56 cities of the Russian Federation. The operator is owned by PFPG (75.5%). Another 10% of “ER-Telecom” are owned by Baring, 14,5% — by management.

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