The European Bank of Reconstruction and Development announced yesterday its intention to invest up to $30.5 million in Trivon AG, an internet broadband provider operating in Russia under the Virgin Connect brand.
The financing will allow the company to expand the coverage of Trivon’s internet broadband services in the Russian regions through the acquisition of broadband internet operators as well as the organic growth of the company’s networks.
The project will address the low broadband penetration in Russia and in particular in the regions outside of Moscow and St Petersburg which today are still underdeveloped in terms of broadband internet services, EBRD states. Trivon’s expansion in sparsely penetrated regions would contribute to increasing broadband penetration in such regions as well as to driving prices down over time.
“At the same time, the involvement of Virgin Group, with their standards of excellent corporate governance and business practices, applied to Trivon and the acquisition targets, will have a positive impact on practices in Russia,” EBRD believes.
Trivon AG is an internet broadband services provider incorporated in Switzerland and operating in Russia. Trivon operates a combination of fixed and wireless broadband networks for which it owns licenses in 33 Russian regions. Trivon has been operating under the Virgin Connect brand after securing a brand license agreement with the Virgin Group for Russia and the CIS region.
