Rostelecom intending to buy 75% share of GNC-Alfa

Yerevan/Mediamax/. Rostelecom intends to buy 75 percent share of Armenian backbone operator GNC-Alfa.

Russian “Kommersant” and “Vedomosti” newspapers wrote this today quoting the materials to the session of the Board of Directors of Rostelecom due on January 16.

100 percent share of GNC-Alfa is estimated at $30 million.

“Kommersant” also writes that Rostelecom is intending to buy Ucom internet provider, “which, together with GNC-Alfa will ensure it at least 13% of the Armenian broadband internet market.” “Kommersant” was told in GNC-Alfa that “only company’s CEO Hayk Farmazyan, who was out of reach yesterday, may provide comments on issues related to purchase.”

 Mediamax recalls that in October 2010, GNC Alfa Rostelecom signed an agreement on starting service provision under Rostelecom brand on the territory of Armenia.

GNC-Alfa CEO Hayk Farmazyan informed Mediamax then that the agreement envisaged rendering Armenian customers Rostelecom services, such as IP-transit, internet connection for corporate customers and provision of connection channels for rent. He also said then that the agreement did not envisage purchase of the assets of the Armenian company by Rostelecom.

In May 2011, GNC-Alfa CEO Hayk Farmazyan confirmed reports that the shareholders were considering the possibility of selling the business entirely or only part of it. “We have hired advisers to conduct the potential transaction. As far as I know, purchase offers have already been sent to several Russian and European companies,” he used to say.