Rostelecom Intends to Sell Armenian Subsidiary for $25 Million: Who is the Likely Buyer?

Rostelecom plans to sell the assets of its Armenian subsidiary, GNC-Alfa, for an initial price of $25 million. This was announced to journalists by Rostelecom's CEO Mikhail Oseyevsky, according to Interfax.

The news about the sale of the Armenian telecom operator emerged in early November. Oseyevsky noted that there is currently one potential buyer, but he did not specify who it might be.

Previously, Armenian media, citing the Public Services Regulatory Commission of Armenia (PSRC), reported that the potential buyer is the Armenian Electric Networks (AEN) company, which aims to purchase shares through Molitro Holdings Limited. According to media reports, AEN holds a monopoly on the distribution of electricity in Armenia and belongs to the Tashir Group, backed by Russian businessman Samvel Karapetyan.

In February 2012, Rostelecom became the majority shareholder of GNC Alfa by acquiring 75% of the company for $22.5 million, minus one share, and also obtained an option to acquire the remaining 25%, plus one share. In August 2019, Rostelecom exercised that option and purchased the remaining shares.