Rostelecom completes the second stage of its reorganisation
Print version
01.10.2013
Moscow, Russia – October 1, 2013 – Rostelecom OJSC (the “Group”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that Svyazinvest OJSC (“Svyazinvest”), as well as 20 other joint-stock companies1, which are either directly or indirectly controlled by Rostelecom and/or Svyazinvest, have today been excluded from the Unified State Register of Legal Entities following their merger with Rostelecom. This brings to an end all activities carried out by Svyazinvest’s OJSC, as Rostelecom has assumed all rights and responsibilities for the merged companies in accordance with the transfer deeds.
As a result of the reorganisation, the Russian Federation, represented by the Federal Property Management Agency together with Vnesheconombank, now owns more than 51% of the Company’s ordinary shares. The total number of ordinary shares in Rostelecom has been reduced by 9.3% to 2,669,204,301 shares following the conversion of Svyazinvest OJSC’s2 ordinary shares into additional Rostelecom ordinary shares, and the cancellation of 1,345,556,268 Rostelecom ordinary shares, which previously belonged to Svyazinvest.
The second stage of Rostelecom’s reorganisation, initiated by a Russian Federation Presidential Decree3, has therefore been completed. This enables Rostelecom OJSC to eliminate any cross-ownership of the Company and it simplifies the shareholder structure of its group of companies.
Sergey Kalugin, President of Rostelecom, commented: “The completion of the second stage of Rostelecom’s reorganisation is a major landmark which represents one of the most important events in the Company’s history and improves Rostelecom’s investment attractiveness. We have finally completed the process of eliminating our cross-ownership structure, which gives us a far simpler and more transparent shareholder structure. In addition, we have consolidated a number of affiliated companies to increase operating efficiency and improve administration processes, and have also acquired some interesting assets to strengthen our market position in certain regions.”
1 National Telecommunications OJSC, National Cable Networks OJSC, St. Petersburg Cable Television Company OJSC, ELKATEL CJSC, National Cable Networks – EuroAsia OJSC, Novosibirsk Antenna Cable Television Broadcasting CJSC, Teleset-Service CJSC, ELTELEKOR CJSC, Mosteleset OJSC, Mostelecom OJSC, TELESET CJSC, TELESET INVEST CJSC, TNPKO OJSC, Simbirsky Telecommunications Systems CJSC, Svyazinvest CJSC, Russian Telecommunications Network OJSC, Novgorod Datacom CJSC, Parma-Inform CJSC, ENTER CJSC and Ingushelektrosvyaz OJSC.
2 In accordance with the terms of the merger agreement between Svyazinvest OJSC and Rostelecom OJSC.
3 Russian Presidential Decree No 340, dated 24.03.2012 ‘On the reorganisation of Rostelecom’.