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WILL ARMENTEL BE RESOLD?
Yerkir.am
April 14, 2006
The statement made by the Greek OTE company on its intention to sell
its 90 percent stock it holds in the Armenian telecommunications
monopolist ArmenTel to Russian companies has been actively discussed
by the Armenian government which holds the remaining 10 percent of
the ArmenTel stocks. The government's agreement is mandatory to cut
such deal.
OTE representatives have allegedly made a visit to Armenia recently to
inform the Armenian government about their intention to sell OTE's
stocks, and judging from the official OTE statements following
the discussion at the government, the latter has agreed to the
deal. However, both the government and the ArmenTel refuse to confirm
or deny the information.
But according to the information obtained from various sources,
OTE is likely to accept the offer of Russian companies, which are
said to offer some $450-500 million. Russia's Bi Lline, Magaphone and
Vimpelcom are mentioned among the potential buyers but it is not yet
clear whether those companies want to get OTE's 90-percent stake or
acquire also the 10 percent stake held by the government.
In 2003, the Russian RosTelecom offered $100 million for the 90-percent
stake but the OTE refused since it demanded at least twice as much. The
situation is apparently different now. ArmenTel is a quite profitable
company; the company's profit stood at $55 million last year.
The OTE explains its intention to sell its stake by the fact that it
wants to concentrate its operations in the Balkans; the company has
lost 216 million euros last year and wants to raise cash by selling
its ArmenTel stake. But speaking at a discussion at the WB office in
Yerevan, ArmenTel CEO Vasilis Fetis boasted the company has received
a $24-million-euro privileged loan. But if the OTE intends to sell
ArmenTel why is it applying for a loan? Is it that OTE wants to
artificially raise the price for ArmenTel?
Yerkir.am
April 14, 2006
The statement made by the Greek OTE company on its intention to sell
its 90 percent stock it holds in the Armenian telecommunications
monopolist ArmenTel to Russian companies has been actively discussed
by the Armenian government which holds the remaining 10 percent of
the ArmenTel stocks. The government's agreement is mandatory to cut
such deal.
OTE representatives have allegedly made a visit to Armenia recently to
inform the Armenian government about their intention to sell OTE's
stocks, and judging from the official OTE statements following
the discussion at the government, the latter has agreed to the
deal. However, both the government and the ArmenTel refuse to confirm
or deny the information.
But according to the information obtained from various sources,
OTE is likely to accept the offer of Russian companies, which are
said to offer some $450-500 million. Russia's Bi Lline, Magaphone and
Vimpelcom are mentioned among the potential buyers but it is not yet
clear whether those companies want to get OTE's 90-percent stake or
acquire also the 10 percent stake held by the government.
In 2003, the Russian RosTelecom offered $100 million for the 90-percent
stake but the OTE refused since it demanded at least twice as much. The
situation is apparently different now. ArmenTel is a quite profitable
company; the company's profit stood at $55 million last year.
The OTE explains its intention to sell its stake by the fact that it
wants to concentrate its operations in the Balkans; the company has
lost 216 million euros last year and wants to raise cash by selling
its ArmenTel stake. But speaking at a discussion at the WB office in
Yerevan, ArmenTel CEO Vasilis Fetis boasted the company has received
a $24-million-euro privileged loan. But if the OTE intends to sell
ArmenTel why is it applying for a loan? Is it that OTE wants to
artificially raise the price for ArmenTel?