Akado International Akado Group of Companies

History

2023: ER-Telecom Holding increases its share to 75%

ER-Telecom Holding on January 26, 2023 announced that it had become the owner of 75% -1 share of Akado Holding.

Having increased its ownership stake in Akado Holding, the company intends to continue to develop in the markets of Moscow and the Moscow Region, offering its clients new digital and infrastructure solutions, including video analytics, smart city systems, data centers, etc., and will also focus on expanding the product portfolio of the acquired asset by integrating the services of the ER-Telecom holding into all business segments.

2022

Ekaterina Lapshina - the new head of Akado

On February 15, 2022, it became known about the appointment of Ekaterina Lapshina as the new general director of Akado Holding. Her predecessor Vladislav Yablonskikh left the company to pursue his own projects. Read more here.

Acquisition of 75% stake by ER-Telecom and Rostec

ER-Telecom and Rostec acquired 75% -1 shares of Akado Holding from shareholders. The 25% + 1 share package will continue to belong to AVK Investments. Akado Telecom announced this to TAdviser on January 11, 2022.

ER-Telecom and Rostec bought Akado Holding
Photo source: zen.yandex.ru

The partnership participants intend to create a platform for the development of digital technologies, including wireless, communications 5G internet of things systems, smart city"," etc video analysts data centers. The parties intend to promote new telecommunication solutions on the market for private users, corporate clients and. public sectors

According to the head of Rostec, Sergei Chemezov, this is a union of strong players, in which the competencies of companies collectively give a synergistic effect.

Partnership in this format opens up new opportunities for the creation and implementation of domestic technological solutions in various areas: from Internet services for the mass consumer to the construction of a large-scale ICT infrastructure for private, municipal and state organizations. For Rostec, as a developer and manufacturer of IT and telecom equipment, this is certainly a promising project, considers Sergey Chemezov.

In turn, participation in the project of ER-Telecom Holding JSC will expand Akado Telecom's product portfolio by integrating services in all business segments.

Investments in Akado are part of our strategy for development in the Moscow and Moscow region markets. The creation of a strategic partnership with Rostec and AVK Investments will bring a new quality of service, new digital products, contribute to the transformation of Akado Telecom into a digital technology company and ensure its outstripping growth in the capital market. commented on the results of the transaction, President of ER-Telecom Holding JSC Andrei Kuzyaev.

The emergence of such strong majority shareholders in the structure of Akado shareholders will give impetus to the development of the company and allow it to fully reveal its growth potential, stated the owner of AVK Investments Maxim Mayorets.

2021: Sale of "Cosmos TV" for 300 million rubles

At the end of December 2021, it became about the exit of Akado from the business of the Cosmos TV company, which provides Internet access and cable television services in Belarus. Read more here.

2020

Getting out of US sanctions

On June 9, 2020, it became known about the withdrawal of Akado from US sanctions thanks to a change of ownership. The fact that the telecommunications operator can now work with partners from the United States again, Vedomosti was told by a source familiar with the company's managers.

and Victor Vekselberg , Renova which by June 9, 2020 owns 49% of Akado, having sold a controlling stake a few days earlier, includes the sanctions list of the US Treasury Department since April 2018. In May of the same year, it turned out that due to US sanctions, the Akado conditional access system, which codes the television signal transmitted from the provider to subscribers (that is, it actually makes pay TV paid), lost technical support after the termination of cooperation with. Cisco

"Akado" came out of American sanctions thanks to a change of ownership

According to the sources of the publication, to minimize the risks associated with this (due to the failure of the Akado system, it would be necessary to refuse to provide pay TV services) allowed the use of an alternative conditional access system. What kind of system we are talking about, the interlocutors of the newspaper do not specify.

According to the Rustelecom analytical agency, Akado's subscriber base is declining. If in 2016 the company provided broadband Internet access services for 400 thousand households in Moscow, then in June 2020 - only for 250 thousand.

Akado requires investment for development, and it was clear that the company's shareholders did not want to do this, "says Rustelecom CEO Yuri Bryukvin. However, it cannot be ruled out that the current transaction is technical in nature and is preparation for the upcoming another resale of the company.

The head of the analytical agency xxTMT Consulting Konstantin Ankilov admits the sale of Akado to one of the existing players in the telecommunications market to strengthen its presence in Moscow.^[1]

Renova sold 51% of Akado to AVK Investments

On June 2, 2020, a deal was closed on the sale of AVK Investments, owned by Viktor Vekselberg, a 51 percent stake in Akado Holding JSC, owned by AVK Investments, whose sole owner is Maxim Mayorets. This was reported by Interfax with reference to the representative of Renova Andrei Storkh.

According to him, they decided not to disclose the financial component of the agreement, but the deal was concluded "on market terms." Freedom Finance analyst Valery Emelyanov estimates Akado's controlling stake at 10 billion rubles. 

Vekselberg sold control in Akado to co-owner of Viacom business in Russia

The investment in Akado is not a profile for Renova, and in recent years we have been looking for a buyer either for the entire asset or for a share. Now such an opportunity has presented itself. For Renova, the stake in Akado will remain a portfolio investment, Storch said.

He added that by the beginning of June 2020, the management of Akado Holding is preparing a new strategy, which is expected to be presented to the board of directors in the next two to three weeks.

According to the SPARK-Interfax system, Maxim Mayorets has owned 100% of AVK Investments since June 2019. Until 2018, he held the position of director of mergers and acquisitions in the Renova group. Since 2015, Mayorets, through Legasi Media LLC, has owned 80% of MTV Networks Vostok LLC, which represents the Russian business Viacom (an American company that owns MTV, Nickelodeon, Paramount Comedy, Paramount Channel, etc.).

Mayorets himself, in a conversation with Interfax, said that negotiations on the purchase of a stake in Akado Holding have been going on since 2019. The asset is of interest, including against the background of Akado Holding's partnership with Viacom in Russia, he said.

Knowing both the team and the shareholder, we offered to try to take over the management of the business, provided that Renova gives us control. The fact that Renova remains in the business of Akado Holding is a comfortable story for us, - said Mayorets.[2]

2015

Aktivs

In 2015, the operator mainly tried to keep already connected subscribers and increase income due to access services related to broadband access, said Kirill Tatus, an analyst at TMT Consulting.

According to preliminary data from Telecom Daily, by the end of the first quarter of 2015, the operator served:

• broadband access subscribers in Moscow,
• about 11,000 - in St. Petersburg and
• just over 60,000 - in Yekaterinburg.

In these cities, the operator has just under 1.5 million pay-TV subscribers.

Dmitry Dronov replaces Victor Koresh as president of the company

In May 2015, it became known that Victor Koresh would leave the post of president of Akado - the group will be led by Dmitry Dronov, who previously held various posts at Comstar-OTS (since 2010 he has been a member of MTS). The contract with Koresh ends on May 31, 2015 and is not renewed by mutual agreement. Dronov's appointment will strengthen the company's management, focused on retaining market share and maintaining the company's subscriber base. To maintain continuity and further implement the company's development strategy, in the development of which Koresh was directly involved, he became a member of the Akado supervisory board.

Koresh became president of Akado in 2011. His maximum task in two years was to achieve development in the regions of presence and, possibly, enter new markets, said Vladimir Kremer, then chairman of the Akado supervisory board. But active expansion did not work out - in mid-2015 in St. Petersburg, Akado occupies less than 1% of the broadband access market, in Yekaterinburg - about 15%. The company has been in a pre-sale state for several years, and savings on investments are incompatible with active development, he notes.

2014: Renova ends talks to sell Akado

Representatives of Renova Media Enterprises Ltd, which owns 100% of Akado, said that they have so far stopped negotiating for the sale of the operator, Vedomosti reports with reference to Viktor Vekselberg, the main shareholder and Chairman of the Board of Directors of Renova Group of Companies ^[3]

The last time the owners of Akado tried to agree on the sale of the operator ER-Telecom, but the signing of the deal was postponed several times, and then the negotiations reached a dead end. According to some market experts, the metropolitan mayor's office, which is the largest customer of Akado telecommunications services, could be partially guilty of disrupting the deal. Allegedly, this caused concern and objections for her.

2013: ER-Telecom reaches agreement to buy Akado

The regional operator ER-Telecom has reached an agreement on the purchase of the Internet and TV provider Akado, a source close to shareholders told Prime in June 2013. According to the interlocutor of the agency, in the coming days, ER-Telecom plans to submit an application to the FAS. In 2013, Transtelecom (TTK), a telecommunications asset of Russian Railways, announced its interest in Akado. Theoretical interest was also expressed by MTS and Megafon, but the fact of negotiations was denied.

In July 2013, the regional holding ER-Telecom filed a petition with the Federal Antimonopoly Service to buy the Internet and television provider Akado. The possible amount of the transaction is not named.

On July 27, 2013, it became known that the Federal Antimonopoly Service approved the application of the provider ER-Telecom for the purchase of Akado. The application to buy 100 percent of the shares is approved without additional prescriptions.

The amount of the transaction is not reported. The purchase of Akado will make it possible to occupy 20 percent of the broadband Internet access market in Moscow. MTS and Beeline control 28 and 23 percent, respectively.

67 percent of Akado shares before the transaction belonged to the Renova group of Viktor Vekselberg. The remaining 33 percent of securities are controlled by entrepreneur Yuri Pripachkin. The company provides telephony and Internet access services in Moscow, St. Petersburg and Yekaterinburg. In addition, she owns the metropolitan operator of the fiber-optical network "Comcor" and half of the Belarusian "Cosmos TV."

2012: Revenue growth by 9% to 11,226,7 million rubles

According to audited financial statements according to standards IFRS , AKADO Group's revenue growth in 2012 amounted to 9% - from RUB 10,315,8 million in 2011 to RUB 11,226,7 million in 2012. The indicator EBITDA in 2012 increased by 25% - from 3,413,2 million rubles in 2011 to 4,255,7 million in 2012, while EBITDA margin increased from 33% to 38%.

The debt/EBITDA ratio of AKADO Group of Companies decreased from 3.79 to a comfortable 2.79.

If we consider the financial results of activities in the context of segments of commercial activities, then according to the results of 2012. revenue in the B2B segment of AKADO Group increased by 20% from RUB 5,660,1 million to RUB 6,775 million, 6 million, EBITDA increased by 18% from RUB 1,897,6 million in 2011. up to RUB 2,243,6 mln in 2012

In the B2C segment of AKADO Group companies, revenue decreased by 6% to RUB 5,316,9 million, while EBITDA increased by 34% from RUB 1,472,9 million in 2011. up to RUB 1,979,1 mln in 2012 and EBITDA margin from 26% to 37%.

The decrease in revenue in the V2S sector is directly related to the change in the sales strategy since the beginning of 2012, aimed at increasing the profitability of this segment (see the positive effect above). At the end of 2011, AKADO Group companies switched to a stricter subscriber base accounting policy, now 2-month activity is taken into account, and not 6-month activity, as was previously and as is generally accepted on the market. The subscriber base of AKADO Group companies in the V2S sector based on the results of activities in 2012. increased by 1%.

2011

Aktivs

As of 2011, Akado Holding controlled the Moscow cable TV and Internet access operator Akado, fixed-line operator Comcor, as well as operators Akado-Neva and Akado-Yekaterinburg. He also owned 50% of the Belarusian cable operator Cosmos-TV.

According to TMT Consulting, at the end of 2011, Akado controlled 21% of the Moscow retail broadband access market, and at the end of 2014 - 17%.

Renova Media Enterprises shareholder

As of 2011, 100% of "Akado" was owned by Renova Media Enterprises (RME). At the same time, Renova Industries Ltd. controlled 58% of RME, and CMCR Management Ltd. Yuri Pripachkin - 42%.

The decision to resume regional expansion

On August 3, 2011, it became known that Andrei Storkh, a member of the Board of Directors of Akado Group of Companies, told RBC daily^[4]a recent board of directors of the company it was decided to resume regional expansion of the provider. It is expected to return to the pre-crisis strategy for the development of the asset in 2011. At the first stage, Akado will strengthen its position in those Russian regions where it already has its own networks - in Yekaterinburg, St. Petersburg - as well as in Belarus. At the second, it is planned to enter Russian cities with a population of one million. At the same time, both the possibility of organic growth and the purchase of assets in the regions are considered. "To implement such a company policy, we assume that a change of leadership will be required. We have already made an offer to one of the top managers of a large telecommunications company, we are waiting for his decision. At the same time, the current CEO Denis Lobanov is likely to remain in the structure of the company, "added Mr. Storkh.

According to RBC daily sources in Renova (owns a controlling stake in Akado Group of Companies), the former vice president for regional development of Comstar Victor Koresh, who has already given his consent, has been invited to the post of general director of Akado. His contract may be signed at the end of August 2011.

Opening of a second credit line by Sberbank for 3.9 billion rubles

On February 4, 2011, it became known that the second credit line opened by Sberbank of Russia on January 27, 2011, in the amount of RUB 3.9 billion, which will be used to finance the AKADO investment program and to implement the Group's strategic development program. In particular, the transition to DOCSIS.3.0 technology is planned for 2011, which will ensure the transmission of data to a subscriber at speeds up to 400 Mbps, a significant expansion of the presence of the AKADO operator in the Moscow region due to the development of new areas of the Moscow region, improvement of the package of television services and the inclusion of new TV channels in the AKADO network. All these initiatives will be largely financed by credit funds from Sberbank of Russia.

Due to the new terms of the loan agreements signed between Sberbank of Russia and AKADO Group of Companies, the Group is granted a delay in repayment of the principal amount over the next three years, as well as an increase in the average term of loans in the Group's portfolio by more than 5 years. As a result of the conclusion of new loan agreements, Sberbank of Russia becomes the main creditor of AKADO Group of Companies, and loans from other banks are repaid.

Purchase by Renova of a 7% stake in Akado

On February 3, 2011, it became known that Renova Viktor Vekselberg acquired a 7% stake in Akado from the company's general director Yuri Pripachkin. The deal could cost the tycoon $56-77 million.

Pripachkin announced the deal to Vedomosti and confirmed by a source at Akado. Now Pripachkin owns 42% of Akado, and Vekselberg's Renova owns 58%. Pripachkin does not disclose the amount and details of the deal. But earlier this week, he announced that he considered an objective estimate of the entire company at $1.2 billion. According to him, it was in this amount that Svyazinvest estimated Akado.

Until now, there were other contenders for Akado - Tsentrtelecom (controlled by Svyazinvest) and Megafon. The deal with the first shareholders of Akado was discussed in September 2010. It was assumed that Centrelecom would pay $1.07 billion for the entire company. But the then general director of the holding, Yevgeny Yurchenko, considered the price overpriced. And on January 31, 2010, the boards of directors of three Svyazinvest companies approved the purchase of 71.8% of National Telecommunications (NTK). But a source in Svyazinvest assures that the purchase of NTK does not exclude a deal with Akado. Pripachkin says talks with the holding have not resumed.

Megafon also negotiated the purchase of Akado in 2010. In June, he estimated the operator at $700 million, and in September, according to sources in Svyazinvest, increased the offer to an amount comparable to the estimate of the state holding.

Perhaps Pripachkin was counting on money from the failed deal with Svyazinvest, suggests VTB Capital analyst Viktor Klimovich, and then found a buyer in Vekselberg. But, on the other hand, Akado shareholders can thus try to convince a potential buyer that they themselves take the company's valuation seriously, he argues. The last similar transactions took place on 8-11 EBITDA indicators, says Klimovich. Then 7% could cost 56-77 million.

Loan from Sberbank for 5.6 billion rubles

In January 2011, the extradition of Akado 5.6 billion rubles. ($188 million) announced. Sberbank The loan term is seven years, a bank spokesman said, without specifying other details. A press release from Sberbank says that the agreement will help Akado "balance the loan portfolio by maturity, and also contribute to a significant decrease in borrowing costs and currency risks."

The funds will go, in particular, to refinance the group's debt to Raiffeisen Bank, sources close to both sides of the agreement say. Sberbank offered much more favorable conditions, says one of Vedomosti's interlocutors^[4] of^[4]. The rate could be up to 10% per annum, suggests a source in one of the banks - partners of Akado.

The remaining amount will go to the partial extension of the loan of Sberbank itself (in 2007 it allocated two credit lines to Akado for a total amount of 6 billion rubles. maturing in 2014-2015), as well as for the development of the company.

As of January 2011, the debt to Raiffeisen Bank is about 3 billion rubles, to Sberbank - 6 billion rubles, another 1.5 billion rubles. Akado owes Metcombank (part of Viktor Vekselberg's Renova group).

2010

Revenue growth by 19% to 10,561,466 thousand rubles.

According to the results of 2010, AKADO Group's revenue growth amounted to 19% - from RUB 8,860,325 thousand in 2009 to RUB 10,561,466 thousand in 2010. EBITDA in 2010 increased by 64% - from RUB 2,231,213 thousand in 2009 to RUB 3,660,460 thousand in 2010, and EBITDA margin increased from 25.2% to 34.7%.

The total number of subscribers - individuals served by the operating companies of the holding is more than 2.7 million. In particular, according to the results of 2010, the consolidated subscriber base of pay television of AKADO Group companies increased by 10.5% to 511.7 thousand. According to the results of last year, the number of "active" subscribers of broadband Internet access increased by 8.15% to 618.9 thousand.

Thus, the company retained its leadership in the digital television market Moscow and occupies a confident 2nd place in the capital's broadband access market for private users. At the same time, ARPU services broadband access remained at the same level, and ARPU of digital television services tended to increase.

The company's development strategy implemented in 2010 led to the growth of Akado 's subscriber base for broadband access and cable television services, which was evidence of a complete recovery of the business after the 2008-2009 crisis.

Negotiations on the sale of the company to Tsentrtelecom

At the end of March 2010, the AKADO Group of Companies managed to prolong the previously issued Raiffeisen Bank loan. According to the agreement reached, the debt will be repaid by the end of 2012 and thus the short-term bridge loan has become long-term. After the extension of the Raiffeisen Bank credit line, the term debt of AKADO Group of Companies (with repayment until the end of 2010) is about $30 million.

On September 6, 2010, it became known that Centrelecom could gain control of the Akado group by buying only 25% of its shares. This deal will cost him about 9.8 billion rubles. The price will decrease if by the time of the transaction Akado does not increase its stake in one of its base assets - Comcor to 100%

According to the "Basic Terms of the Transaction for the Acquisition of Shares of Akado International Ltd.," signed by representatives of the seller - Renova Media Enterprises (RME) and the buyer - Tsentrtelecom, the transaction will take place in two stages. At the first stage, Centrelecom will acquire the 25% of Cyprus Akado for 6.13 billion rubles. ($199.7 million per 3.09.10). First, he will buy 1.27% of Akado from RME for 311.7 million rubles, and then Akado itself will issue and sell an additional issue to Tsentrtelecom - 23.73% of the increased capital. These shares will cost Tsentrtelecom 5.82 billion rubles.

Further, three Moscow assets of Svyazinvest - Rosnet, the Moscow Center for New Technologies and Telecommunications and Centel - will be included in Akado in exchange for an additional package, the size of which will depend on their assessment. Approximately 17-18%, RME will retain economic control over Akado at the end of the first stage, a source close to the participants in the transaction claims.

These remaining shares of Akado will be bought by Rostelecom, which by March 2011 will unite Tsentrtelecom and seven more Svyazinvest companies. RME will be able to sell part of the shares (or all) for money (based on an independent assessment), and part - to exchange for a stake in Rostelecom.

The total value of 100% Akado at the first stage of the transaction is estimated at 18.72 billion rubles, follows from the document ($609.8 million). This is 10 forecast indicators of Akado EBITDA for 2010 (2.94 billion rubles) minus net debt (10.65 billion rubles). Based on this estimate, 25% should cost 4.68 billion rubles, and not 6.13 billion rubles at all. But there is also a premium for control, which Centrelecom agreed to pay RME after buying 25%, explain three managers close to the participants in the deal. This is $120 million, according to Basic Conditions. By paying this amount, Tsentrtelecom will have access to the Akado operational control. And RME will lose the right to vote on all issues except key ones (bankruptcy, reorganization, transactions over $10 million, etc.).

This is the basic scheme of the deal, but it could yet change, sources on both sides of the talks have warned. But the price is unlikely. 11 EBITDA indicators - so far the best RME offers available, a source close to sellers admits. Megafon also claimed Akado, but he gave no more than $700 million for it, including debt.

11 EBITDA indicators pay only for assets in rapidly growing markets, notes Uralsib analyst Konstantin Belov. And the penetration rate in the Moscow Internet access market has long been above 50%. But Akado is also a media company, a manager close to Svyazinvest draws attention, and the media market is growing rapidly. In addition, he continues, the negotiations with RME had to take into account market conditions - for example, the deal to buy Multiregion (MTS estimated it at 13 EBITDA).

The cost of Akado may still decrease. This will happen if Akado does not gain control over 100% of Comcor, a subsidiary that serves the corporation and owns the longest fiber-optic network in the capital. Now Akado has 74.7% of "Comcor," the rest is from the Moscow Department of Property. He received an offer to buy a stake in Comcor, says department spokesman Natalya Bykova, but is legally obliged to auction this package.

2009: Revenue growth to RUR 8,860,325 thousand

According to the audited standards financial statements IFRS for 2009, revenue growth was 14%, from RUB 7,764,746 thousand in 2008 to RUB 8,860,325 thousand in 2009.

EBITDA in 2009 increased by 39% from RUB 1,603,291 thousand in 2008 to RUB 2,231,213 thousand in 2009, while EBITDA margin increased from 20.6% to 25.2%.

2008:52% revenue growth

In September 2008, Akado borrowed $100 million from Raiffeisen Bank for 18 months.

According to the audited financial statements according to the standards IFRS for 2008, the revenue growth of the Akado group of companies amounted to 52% - from $205.4 million in 2007 to $312.4 million in 2008.

The indicator EBITDA in 2008 increased by 120% - from $29.365 million in 2007 to $64.505 million in 2008, while EBITDA margin increased from 14% to 21%. The group's gross income grew by 102% - from $67.9 million in 2007 to $136.9 million in 2008.

2007: Two credit lines from Sberbank

In 2007, Sberbank allocated two credit lines to Akado for a total amount of RUB 6 billion, maturing in 2014-2015.

Notes