MOSCOW Oct 11 Russia's state-backed private
equity investment fund and Deutsche Bank are
investing $237 million in Rostelecom, betting that the
telecoms group will benefit from rising demand for high-speed
State-controlled Rostelecom announced plans in July to sell
some of its treasury shares to a pool of investors, led by the
Russian Direct Investment Fund (RDIF), to reduce debt.
The RDIF and Deutsche Bank will buy 72.2 million shares in
total, the fund and the telecoms operator said in a statement,
adding Rostelecom will use the proceeds to help strengthen its
market position and reduce debt.
The investment equates to a 2.7 percent stake, Rostelecom
said. Deutsche Bank was not immediately available for comment.
Rostelecom is entitled to a portion of profits from any
increase in the value of the shares, they said, as the structure
of the deal contains agreements relating to call and put
options. The investors will also receive protection against a
decrease in the share price, they said.