Baring Vostok Capital Partners (BVCP), one of Russia’s most successful telecom and media investors, has acquired a 10% stake in ER-Telecomat a cost of USD 80 million. Prior to the deal, ER-Telecom had only two investors; Perma Industrial and Financial Group (95%) and company management (5%). The share sale was initiated to help finance ER-Telecom’s further development. The investment fits nicely with the BVCP portfolio which is heavily invested in the telecom sector.
ER-Telecom is one of Russia’s largest regional players in the telecom industry. As a “triple-play” service provider, the company provides 2.4 million subscribers with cable television, broadband internet access, and telephony services.
ER-Telecom services corporate and residential customers in Russia, Siberia, and the Urals. In 2009 company revenues increased 60% over the previous year, to RU 4.6 billion. It currently controls 7% of Russia’s cable TV market and 8% of the broadband internet market. The company was founded in 2001 and is based in Perm, near the Ural mountains.
Baring Vostok Capital Partners (www.bpep.com)
Baring Vostok Capital Partners is a leading private equity firm active primarily in Russia and the CIS. Since 1994 Baring’s five funds have placed investments worth more than USD 950 million in 55 companies. The firm’s investment strategy involves focusing on the consumer products, financial services, media, oil & gas, and telecom sectors.
Baring Vostok has a number of leading institutional investors from North America, Europe, Asia and the Middle East. These include pension funds, governmental investments, endowments and international institutions.