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Investment
January 2021 www.intellinews.com I Page 11
Rostelecom intends to hold a conference call in the beginning of 2021 to discuss the transaction and the outlook for data centres and the company’s cloud business, with further details still to be announced.
“For Rostelecom, we see the deal as net positive. On our numbers, RTKM trades at a 2020E EV/ EBITDA of 3.4x, while the transaction multiple
is almost 2.3x higher. We think that now that Rostelecom has a price tag for its cloud assets, the market may start more actively pricing in RTK-DC’s growth potential in Rostelecom’s share price, as well as higher valuation multiples
and a potential IPO. While we note that the deal value implies a discount of over 60% to where its US data centre peers trade on average, we think this is justifiable considering the country-specific and liquidity risks, as well as the different stages of development at which the cloud markets are in the US and Russia.
"We see the deal as marginally positive for VTB. Although it is not material for the bank, it is likely to improve investor sentiment, we think, as it emphasises VTB’s pivot to the digital economy,” Sova Capital said in a note.
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