Ufanet found an investor

The private equity fund Volga River One which is managed by ex-managers of MDM-bank became a co-owner of large regional provider "Ufanet" 

JSC “Ufanet” – provider of Internet and cable TV
According to company own estimation it serves nearly 250 000 users out of which 130 000 use broadband Internet-access and 170 000 – cable TV.
Shareholder (before the deal with Volga River One) – LLC «Firm «Bashkirskie investicii»
Key financials (2008, company forecast)
Sales –1,08b RUB
EBITDA - 280b RUB

The investment department director of N.R. Growth Consulting Ltd., which accomplishes deals in the interests of Volga River One, Pavel Nazarov told “Vedomosti” about the deal. Outside Moscow the level of broadband Internet penetration is only about 10% and so this market is very interesting, he said. The amount invested was not mentioned.

According to “Ufanet” chairman of the Board Marat Ahmetishin, the Fund got company additional share issue of the company. All the money (the amount of which Ahmetishin does not disclose also) will be used in development – the construction of “last mile”, fiber-optic channels as well as for acquisition of other providers, says he.

According to Ahmetishin “Ufanet” has no short-term debts. Although the deal was discussed before crisis started, the sellers got a little discount in connection with changing situation on financial markets.

“Ufanet” – is one of the biggest regional Internet providers, there are very few of such providers remaining in Russia, notes Konstantin Ankilov the analist of iKS-Consulting. He estimates the company value at $50m

For the Fund Volga River One, which is managed by ex-deputy of the Board of MDM-Bank Alexei Panferov, this is already second investment in broadband internet provider. In March 2008, The Fund got blocking stake of Samara WiMax provider “Metromax”, sources were estimating the deal at about $20m. According to the Fund, it has a right to multiply its share in “Metromax” to 49,6%
In addition to this, the Fund owns shares of sport manufacturer Sprandi, car dealer Genser and electronics retailer “Bieliy Vieter Tsifrovoi”