IPO did not help to master the Russian open spaces

I decided to ask about the reasons for selling Irish Consolidated Communication Corporation (3C) to my Golden Telecom (GT) company in Russia . It looked somehow strange, because a year and a half ago, 3C, on the contrary, held an IPO in London to raise funds for the purchase of new assets.

It turns out that 3C not only failed to acquire new companies, but even support the work of the operators that already belong to it. Thus, the lack of working capital of its Russian representative office (includes the alternative operator of the two capitals DirectNet and satellite and IP telephony provider SatKom-Tel) in March was $ 400 thousand. As a result, in February the company decided to suspend the listing on the London Stock Exchange Exchange

3C hopes that the sale of GTs of its Russian assets for a sum of between $ 1.7 million and $ 2.9 million will help ensure the company's financial stability in the near future. But since this transaction will fundamentally affect the business of 3C (so far Russia has been a priority in the activities of the Irish corporation), its discussion should be submitted to the shareholders meeting. In this regard, the board of directors of 3C has already warned shareholders that in case of non-receipt of their approval, the company will not be able to declare voluntary liquidation.

Russian assets are not the only ones that 3C gets rid of. The company also sells for? 185,000 of the Hungarian operator Banknet, serving ATMs via satellite channels. Now 3C has only IP-telephony networks in Hungary and the UK. “The 3C story clearly demonstrates that an IPO is not a panacea, but rather a luxury,” said Margarita Zobnina, a senior expert at IKS-Consulting. “And this should be understood by Russian companies that have recently been very keen on holding an IPO.”