Kismet Capital Group Expands Tower Asset Portfolio with Purchase of Russian Towers

MOSCOW, Jan. 10 (Reuters) – Investment firm Kismet Capital Group on Monday announced that it has acquired 100% of Russian Towers, a deal that would give its joint venture with telecommunications company Megafon (MFON.MM) the largest portfolio in ‘tour assets in Russia.

Kismet, which financed the deal with its own funds and a loan from the main Russian lender Sberbank (SBER.MM), said Russian Towers will now be part of New Towers, which already owns assets of the tower company Vertical and of the First Tower Company of Megafon.

After incorporating Russian Towers, Kismet Capital Group will own a 65% stake in New Towers, with Megafon taking a 25% stake and Vertical the rest, Kismet said.

Faced with difficult revenue growth and stubbornly high debt accumulated from the latest network upgrade, telecom companies across Europe are looking to raise funds by selling their tower portfolios or creating future flows. of income by disposing of these assets. Read more

Russia’s largest mobile operator MTS announced in November that it could sell its tower assets and Rostelecom (RTKM.MM) intends to do the same.

Telecommunications company Veon, whose main market is Russia, finalized a $ 970 million deal to sell its portfolio last month.

Russian Towers’ portfolio includes around 7,200 antenna mast structures across Russia, Kismet said. The merger of the assets of three towers brings the structures of New Towers to more than 30,000.

Kismet founder Ivan Tavrin, former CEO of Megafon, said the acquisition was part of a long-term strategy to grow his tower business.

“We plan to go public with the merged company and will be open to entry into new geographies,” he said in a statement.

Under the company merger deal, Megafon’s First Tower Company was valued at 94.2 billion rubles ($ 1.26 billion), the parties announced in October.

($ 1 = 75,0 160 rubles)

Reporting by Gleb Stolyarov; written by Alexander Marrow; edited by Jason Neely

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