Russian telco Rostelecom and state telecoms holding Svyazinvest have completed the second stage of their reorganisation, thereby ending the cross ownership between them.
As a result all of Svyazinvest’s former activities have now been assumed by…
Russian telco Rostelecom and state telecoms holding Svyazinvest have completed the second stage of their reorganisation, thereby ending the cross ownership between them.
As a result all of Svyazinvest’s former activities have now been assumed by Rostelecom.
The reorganisation also affects 20 subsidiaries which were owned by either or both of the telcos.
Following the move the Russian government now controls 51% of Rostelecom, via the Federal Property Management Agency together with Vnesheconombank.
Rostelecom president Sergey Kalugin said in a statement that the simplified shareholder structure “is a major landmark which represents one of the most important events in the company’s history and improves Rostelecom’s investment attractiveness”.
The merger of Rostelecom with Svyazinvest is the result of a presidential decree, ordered back in March 2012.
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.