Shareholders in Russian state-controlled Rostelecom have approved the telco’s merger with state telecoms holding company Svyazinvest and 20 of their subsidiaries.
The approval means Rostelecom is nearing the end of the second phase of its…
Shareholders in Russian state-controlled Rostelecom have approved the telco’s merger with state telecoms holding company Svyazinvest and 20 of their subsidiaries.
The approval means Rostelecom is nearing the end of the second phase of its reorganisation process, ordered by presidential decree in March 2012, according to a company statement.
Nearly 62% of the telco’s shareholders attended the EGM at which the vote took place, with 97.7% voting in favour of the reorganisation.
In line with the agreement governing the Rostelecom-Svyazinvest merger, Svyazinvest ordinary shares were placed at Rbs1 (US$0.03) each and converted into Rostelecom ordinary shares, which have a nominal value of Rbs0.0025 each.
The agreement also provides for the cancellation of the 1.3 billion Rostelecom ordinary shares held by Svyazinvest. The 20 subsidiaries involved are all directly or indirectly fully-owned subsidiaries of Rostelecom or Svyazinvest – mostly regional telcos and cablecos.
Rostelecom noted that the state will retain a stake of more than 50% after the merger, in accordance with the presidential decree.
Rostelecom CEO Sergey Kalugin said the company is approaching the final step of the second phase of the reorganisation.
“In fact, we have passed the point of no return and all that is left to complete this stage are formal procedures relating to the mandatory buyout and on the legal reorganisation, when the merged companies will cease to exist as separate legal entities, and their assets and liabilities transfer to Rostelecom.”
Kalugin reiterated that the reorganisation is designed to eliminate cross ownership between Rostelecom and Svyazinvest and allow for a more transparent, simplified shareholder structure.
“Furthermore, Rostelecom will obtain a number of interesting assets from Svyazinvest,” he added. “These latest steps significantly boost the investment attractiveness of the merged company.”
Rostelecom is among the assets the government has tabled for privatisation within the next three years. In May, the Ministry of Economic Development included the telco on a list of planned privatisations, saying it wants to sell its stake by the end of 2014. However, there has been considerable speculation about whether this is a realistic timeframe.
