Elbrus Capital announced the launch of Strela Telecom
10 October 2011
The private equity fund advised by Elbrus Capital has established Strela Telecom through acquisition of 8 providers of broadband internet and cable TV in Russian regions.
Strela Telecom focuses on smaller Russian regional cities with population between 100 and 600 thousand, particularly in Siberia and Far East. These markets are fragmented, significantly under penetrated and provide high growth potential as more consumers are demanding superior quality and high speed service.
Strela Telecom currently has over 200 thousand broadband and cable TV subscribers and operates in 8 cities of Russia, including Tomsk, Ulan-Ude, Angarsk and Khabarovsk. In most of its cities, Strela Telecom has leading market positions. Strela Telecom invests in upgrading and expanding the acquired networks and brings them to the unified standards of the group. The company extracts significant synergies by centralizing key functions, such as purchasing, billing, marketing and finance.
In Strela Telecom the fund has partnered with an experienced management team with strong track record of successfully building, integrating and operating regional providers of internet and cable TV.
Elbrus Capital will invest further equity into the development of Strela Telecom, and is in process of raising additional debt funding for the company.
Dmitri Krukov, Managing Partner of Elbrus said: “High quality broadband and cable television are becoming essential for consumers across Russia. Strela Telecom focuses on relatively underpenetrated markets, particularly Siberia and Far East. We will continue to support the development of Strela Telecom through further consolidation, high organic growth and realization of operational synergies and improvements.”
Mikhail Kollontay, Chairman of The Board of Strela Telecom, added: “The regions we operate in are under served by large providers and will continue to experience dynamic growth. The combination of financial resources and other capabilities of Elbrus Capital and our team’s management experience position Strela Telecom extremely well for the success in our target markets.”
About Elbrus Capital
Elbrus Capital is a leading Russia and CIS focused private equity business. Elbrus Capital advises a leading private equity fund in Russia and CIS with $324 million raised from international institutional investors.
Elbrus Capital focuses on market leaders, looking for further growth and consolidation opportunities. The portfolio of the fund advised by Elbrus Capital consists of investments in Media-One, a Russian media company which includes TV business UTH and radio business Vyberi Radio, Strela Telecom, a regional provider of broadband internet and cable TV services, Cantina City, a contract catering operator, Blesk InCare, an industrial laundry provider and an automotive retailer in Siberia.
For more information please visit www.elbcp.com.
Should you have questions, please contact Ilya Novokhatsky, DNA Communications, (Elbrus Capital’s public relations representative), tel.: +7 925 5181798, e-mail: firstname.lastname@example.org.
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