ICT Group and Investment Company A&NN became the largest shareholders of the Peruvian company Yota Del Peru (established by Yota Holdings and Multinet Group for providing broadband Internet access services via the WiMax (4G) technology in 2010) on a parity basis, ICT Group informed.
As a result of the transaction Yota Holdings completely withdrew from the company' stockholder equity. The deal value was not revealed.
As estimated by the new shareholders, total investments in the company's development will exceed $100 million next three years. By 2015, the subscriber base is expected to exceed 300 thousand subscribers, EBITDA to exceed $60 million. After the transaction, the new shareholders approved and effected the acquisition of additional frequency content.
Peru features poorly developed telephony infrastructure restricting the growth of the number of wired broadband Internet access subscribers which forces people to use public access points.
"We expect the wide frequency range, the technological neutrality of the concession and the absence of other large players in this segment will ensure quick and efficient development of the wide-reaching Internet access service in the Peruvian market." said Igor Litvak, the head of ICT Group's investment management, commenting on the transaction.
Multinet Group, experienced in working in telecommunication markets in developing countries, will perform operational management of the company. Multinet Group will also own a minority stake in the company. Multinet Group's management team will consist of specialists possessing experience in assuming key positions in major Russian and foreign telecommunication companies, among them Sergey Avdeev, former CTO (Chief Technical Officer) of OJSC VimpelCom.
In the short term, the company will operate under the international brand Ollo and intends to give up on using the Yota brand in its name and operations. The Ollo brand is employed by a 4G operator in Bangladesh, its shareholders being ICT Group, A&NN and Multinet Group.
ICT Group is one of the largest Russian private investment and industrial holdings in Russia. It manages assets related to finance, precious metal mining, transport machine-building, industrial engineering, commercial and industrial development spheres. At the moment, the Group's asset pool includes Polymetal, Nomos-bank, Khanty-Mansiyskiy Bank, Tikhvin carriage works etc.
The group also owns large blocks of shares in Uralkali and Baltiyskiy Leasing.
Yota Del Peru is the only company in Peru which owns a concession to provide wireless broadband Internet access services throughout the whole country using a 22 Mhz wide channel all over the country and 78 Mhz in the Lima region, within the 2.5 Mhz range. The concession is technically neutral which will enable the company to migrate to the promising LTE standard. The company's strategy provides for developing wireless broadband Internet access networks both in Lima and smaller cities of Peru.