Russian president Dmitry Medvedev has reportedly ordered a merger between Rostelecom and national telecoms holding unit Svyazinvest within 12 months. Both entities are state-controlled.
According to Russian news service Ria Novosti, the order …
Russian president Dmitry Medvedev has reportedly ordered a merger between Rostelecom and national telecoms holding unit Svyazinvest within 12 months. Both entities are state-controlled.
According to Russian news service Ria Novosti, the order states that the government and national development bank Vnesheconombank (VEB) will retain a controlling majority stake in the merged entity, which will operate under the Rostelecom brand name.
The report adds the merger will mark the second stage of a long-term restructuring plan for Rostelecom.
In April 2011, the company merged with eight regional telecoms operators – all former subsidiaries of Svyazinvest, which holds a 43.37% stake in Rostelecom.
Svyazinvest first revealed its plans for the merger in February 2009, when it stated its intention to restructure the business with a view to becoming a national champion.
Rostelecom holds 25% plus one share in Svyazinvest. The company declined to comment.
