VTB acquires 100% of Tele2 Russia

PRESS RELEASE

27 March 2013

VTB acquires 100% of Tele2 Russia

VTB Group is to acquire 100% of Tele2 Russia from Tele2 AB as a private equity investment. The signing ceremony took place in Stockholm, 27th of March 2013 in the presence of Andrey Kostin, President and Chairman of VTB bank and Cristina Stenbeck, Chairman of the board of directors of Kinnevik. The agreement was signed by Yuri Soloviev, First Deputy Chairman, VTB bank and Mats Granryd, President and CEO, Tele2 AB.

VTB is acquiring Tele2 Russiafor USD 2,4 bln in equity value. As a strong and reputable financial investor in Russia, VTB is well positioned to support Tele2 Russia in the next stage of its development with a view to realize its investment.

Andrey Kostin, VTB President and Chairman says: "We believe that Tele2 Russia is a good financial investment which will be growing faster than the market. The company has a solid track record of growth and profitability in Russia, and a strong regional position as the 4th Russian mobile operator with almost 23 million subscribers. VTB plans to cooperate with financial and strategic partners in order to further develop it's investment".

Mats Granryd, President and CEO, Tele2 AB comments: "We have built a very successful Russian mobile business of almost 23 million subscribers, skilled employees and strong profitability, under a strong brand over the last 12 years. This transaction crystalizes that success. We wish VTB well in continuing to build a mobile operator in a significantly developing market. Tele2 AB will carry on investing in and seizing opportunities that surging mobile data usage is creating in our core markets: Sweden, the Netherlands, Norway and Kazakhstan."

VTB Capital advised VTB Group on the acquisition of Tele2 Russia.

For reference

Tele2 Russia - is a number 4 telecom operator in Russia, which has mobile service licenses in 43 regions and 22.7 mln subscribers as of the end of 2012. 2012 revenues - USD 1.9 bln, net profit - USD 300 mln.

Tele2 Russia is 100% owned by Tele2 AB (Sweden), which main shareholder is Investment AB Kinnevik. Tele2 is one of Europe's leading telecom operators, offering mobile services, fixed broadband and telephony, data network services, cable TV and content services. Tele2 has 38 mln subscribers in 11 countries. In 2012, net sales amounted to USD 6.7 bln (SEK 43.7 bln).