Further developments in the Russian market – MegaFon prepares towers for market
Hot on the heels of Vimpelcom’s news, a second Russian MNO appears to be preparing to bring its towers to market
According to Russian business daily newspaper ‘Vedomosti’, MegaFon, Russia’s second biggest MNO, has spun out its towers into a separate business, with a view to divestment in the near future. This news comes within days of reports in the Russian press that competitor BeeLine (owned by Vimpelcom) has appointed Merrill Lynch to oversee the sales process of around 7,000 towers in Russia, potentially sparking a race to be first to market.
Should MegaFon find a suitable buyer and a price which meets their expectations, they could expect to raise tens of billions of roubles, but by spinning out their towers business, there is also an opportunity to develop the business further towards an IPO, as successfully achieved by Telecom Italia with their Inwit business unit, which was valued at €1.95 bn after