Russia’s Rostelecom is set to buy back 6.5% of its own ordinary shares and 17.5% of preferred shares for Rbs30.25bn (US$920.5m) as part of the second stage of its state-directed reorganisation.
The state-controlled telco announced that it will buy…
Russia’s Rostelecom is set to buy back 6.5% of its own ordinary shares and 17.5% of preferred shares for Rbs30.25bn (US$920.5m) as part of the second stage of its state-directed reorganisation.
The state-controlled telco announced that it will buy 31.4% of the stock tendered by minority shareholders who voted against the reorganisation or abstained from voting at the company’s June EGM.
Russian law states that a company cannot allocate more than 10% of its net assets to finance the buyback.
Rostelecom aims to buy back the shares by 9 September.
The reorganisation, ordered by presidential decree in March 2012, sees Rostelecom merge with state-controlled holding Svyazinvest.
Shareholders owning 61.6% of Rostelecom’s voting shares took part in the vote at the June EGM, with 97.7% voting in favour of the reorganisation.
Last week, Rostelecom confirmed it is set to get an Rbs9bn (US$273m) loan from Gazprombank to help fund the share buyback.
