Returns of Tender on Buying ArmenTel Shares to Be Drawn after June 20
Russian largest telecommunication conglomerations - System Joint Stock Financial Corporation, Rostelecom and Vympelcom - this week made a start in a tender on buying Armenia's largest operator of cellular and fixed telephone communication ArmenTel. Companies from 5 countries will compete with them, most serious of these being considered Kuwaiti MTC and Etisalat from Arab Emirates. Experts believe Russian companies have a serious chance to win the international tender, the Kommersant newspaper writes.
Reception of applications from companies wishing to take part in the auction on buying ArmenTel finished this week. According to the Kommersant, preliminary claims on buying ArmenTel were made by System Joint Stock Financial Corporation, Rostelecom and Vympelcom, MTC Kuwait operator, Sil Group Armenian Concern in partnership with aforementioned investor, Belgacom Belgian operator, PanTel Hungarian operator, Etisalat operator from Arab Emirates. Altimo company was reported to take part in the tender, however Altimo Vice-President Kirill Babayev rejected this reports.
The current owner of 90% share holding of ArmenTel - the OTE Greek company - has announced its intention to sell its stocks in early April 2006. The operator serves 595 subscribers (i.e. all owners of fixed telephones in the country). The Armenian Government holds 10% of ArmenTel shares. The transaction of the company in 2005 made 110 million euros. OTE differences on running the business was a reason for the OTE to wish to part with Armenian assets. The Republic's authorities were against increased tariffs and conversation payment for minute. E.g. President Kocharian commissioned the Minister of Transport and Communication to cancel the payment per minute for telephone conversations since September 1.
June 17 based on the applications received the OTE will shortlist companies for the next round of the tender. Then the participants will submit final applications. The returns of the tender will be drawn July 20. The large number of claimants indicates that the cost of the assets may rise. In the opinion of Russian expert Yelena Bazhenova, Russian companies may offer $450 million for the Armenian operator.
Just Russian telecommunication companies in the opinion of specialists are favorites of the auction. «ArmenTel is attractive, as until lately it was monopolist at the local cellular market, while no one, except it, can provide fixed telephone communication services in Armenia,» said iKS-Consulting Senior Consultant Oksana Pankratova. «Russian companies have more chances to win the tender, as they have more contacts, ties with Armenian authorities, and it is very important for working in the country, as the Armenian Government strictly control the telecommunication market, Yelena Bazhenova believes. "It is worth noting that the OTE announced the tender just after consultations with the Armenian Government," the Kommersant writes.
Reception of applications from companies wishing to take part in the auction on buying ArmenTel finished this week. According to the Kommersant, preliminary claims on buying ArmenTel were made by System Joint Stock Financial Corporation, Rostelecom and Vympelcom, MTC Kuwait operator, Sil Group Armenian Concern in partnership with aforementioned investor, Belgacom Belgian operator, PanTel Hungarian operator, Etisalat operator from Arab Emirates. Altimo company was reported to take part in the tender, however Altimo Vice-President Kirill Babayev rejected this reports.
The current owner of 90% share holding of ArmenTel - the OTE Greek company - has announced its intention to sell its stocks in early April 2006. The operator serves 595 subscribers (i.e. all owners of fixed telephones in the country). The Armenian Government holds 10% of ArmenTel shares. The transaction of the company in 2005 made 110 million euros. OTE differences on running the business was a reason for the OTE to wish to part with Armenian assets. The Republic's authorities were against increased tariffs and conversation payment for minute. E.g. President Kocharian commissioned the Minister of Transport and Communication to cancel the payment per minute for telephone conversations since September 1.
June 17 based on the applications received the OTE will shortlist companies for the next round of the tender. Then the participants will submit final applications. The returns of the tender will be drawn July 20. The large number of claimants indicates that the cost of the assets may rise. In the opinion of Russian expert Yelena Bazhenova, Russian companies may offer $450 million for the Armenian operator.
Just Russian telecommunication companies in the opinion of specialists are favorites of the auction. «ArmenTel is attractive, as until lately it was monopolist at the local cellular market, while no one, except it, can provide fixed telephone communication services in Armenia,» said iKS-Consulting Senior Consultant Oksana Pankratova. «Russian companies have more chances to win the tender, as they have more contacts, ties with Armenian authorities, and it is very important for working in the country, as the Armenian Government strictly control the telecommunication market, Yelena Bazhenova believes. "It is worth noting that the OTE announced the tender just after consultations with the Armenian Government," the Kommersant writes.
