The leading Russian broadband Internet service provider and cable TV operator Akado is negotiating a sale of a 20% – 25% stake in the company to a Western private equity group or strategic investor, reported business daily Kommersant. The newspaper cities the Swedish investment fund Investment AB Kinnevik and media group Liberty among contenders for the stake valued at some $400 million. The bid process is managed by investment bank JP Morgan.
Akado (formerly Renova Media) has some 0.6 million broadband Internet subscribers and 0.4 million cable TV subscribers. Akado is owned by Renova (51%) and Chairman of the Board of Akado Group, Yuri Pripachkin (49%). Its revenues are estimated at $300 million in 2007. Akado operates in Moscow, St. Petersburg, Yekaterinburg and Minsk (Belarus). The company plans to expand into regional cities with a new funding.
The residential broadband Internet service market in Russia grows some 40% per year and is expected to reach $1.5 billion in 2008.
In April 2008, National Media Group agreed to acquire cable TV and broadband Internet provider National Telecommunications for estimated $1.5 billion.