Rostelecom changes its mind about selling its Armenian subsidiary GNC  Alfa

ArmInfo. "Rostelecom" decided to actively develop the Armenian GNC-Alfa operator, the issue of sale  was removed from the agenda. This, as reported by Interfax, was reported to journalists by president of the largest Russian telecom operator, Mikhail Oseevsky.

In December 2021, Oseevsky stated that the company is looking for a  buyer for the Armenian GNC-Alfa fixed-line operator, with a starting  price of around $25 million.

As ArmInfo reported, on January 19, 2022, the RA Public Service  Regulatory Commission approved on January 19 the sale of the 100%  shares of Filor Ventures Limited, the only stockholder of Rostelecom  Armenia, (GNC-Alfa, daughter company of Rostelecom), to Molitro  Holdings Limited (Cyprus) founded by RA citizen Arman Hunanyan and  the Electric Networks of Armenia CJSC. It should be noted that  Electric Networks of Armenia CJSC itself belongs to the founder of  the Tashir group of companies Samvel Karapetyan and his family. Also, through the Russia-based Forabank the Karapetyan family own  almost 11% of the Ucom company, which is one of Armenia's mobile  operators. Ucom gave assurances earlier that they are not a direct or  indirect purchaser of GNC- Alfa CJSC. Rostelecom planned to close the  deal in the first quarter of 2022, but after the start  Russian-Ukrainian conflict postponed it.

"Now the issue of selling (GNC-Alfa - IF) was removed from the  agenda, we have decided on its active development," Oseevsky said on  March 16 on the sidelines of the congress of the Russian Union of  Industrialists and Entrepreneurs. He noted that Rostelecom's Wink  video service has been launched in Armenia, and the construction of a  data center is underway. "We continue to work. The company (GNC-Alfa,  Interfax note) finished last year very well, we are satisfied," the  head of Rostelecom said.

"GNC-Alfa" (CJSC subsidiary of Rostelecom PJSC ) was founded in 2007.  Rostelecom bought 75% minus one share of GNC-Alfa in February 2012  for US$22.5 million. This was the provider's first acquisition  outside of Russia. At the same time, Rostelecom received an option to  purchase the remaining 25% plus one share in GNC-Alfa.

In August 2019, purchased the rest 25.02% of GNC-Alfa for RUB 507mln.   It was in the winter of 2018 that the media first reported  Rostelecom's intention to sell its daughter company. "We are thinking  about how much this business is complementary to us. Our task is not  to sell it. However, other global actors' experience shows that such  inter-country synergy is not obvious," Mikhail Oseevsky, Rostelecom  President, stated then.  "Different laws, different client base,  products. So we are thinking about how we can most effectively  organize our work - including through sale," he said.  In  mid-September 2021, Mikhail Oseevsky stated that the company was  seeking a purchaser of the Armenian communication operator GNC- Alfa,  with the opening bid of about $25mln.

Rostelecom-Armenia is one of the leading telecommunication operators  in Armenia, which has since 2021 been providing broadband Internet  access, smart IP TV services, high-quality stationary telephone  communication, and a number of cloud-based services to individuals  and corporate clients. The company has introduced the GPON technology  in Armenia. The company's optic-fiber network has a total length of  2,500km and covers 80% of Armenia's territory. The network is  connected to the regional mainline communications networks and  international Internet channels through Georgia and Iran.