OREANDA-NEWS. June 04, 2010. OJSC VolgaTelecom declared its intention to acquire 100% shares of Teleset Networks PCL, Cyprus (the Company) – the largest alternative communications operator in the territory of the Republic of Tatarstan. Teleset Networks PCL shareholders were made the offer (Offer) to sell the shares held by them at US\\$0.8473 per share, valuing 100% share capital of the Company at US\\$133.5 million.

Right after forwarding, the Offer was accepted by shareholders owning 98% of Teleset Networks PCL shares and on May 27, 2010 they executed the appropriate SPAs. It is expected that the transaction will be closed within the next week.

Within the framework of corporate procedures of preparing this transaction OJSC VolgaTelecom has obtained all required corporate approvals, including the approval of the Board of directors. OJSC VolgaTelecom has also obtained preliminary approval of the Russian Federation Federal Antimonopoly Service for the purchase of 100% shares of Teleset Networks PCL.

 “This transaction in the best way fits OJSC VolgaTelecom’s strategy of active development in the segment of Internet broadband access, expansion to neighboring regions and strengthening the positions in fixed line telephony market, – notes OJSC VolgaTelecom’s Board of directors chairman, OJSC Svyazinvest General Director Evgeny Yurchenko. – The purchase of the Company completely agrees with Svyazinvest Group concept of creating a company-champion in telecommunications industry of Russia on the basis of consolidated OJSC Rostelecom”.

 “Acquisition of Teleset Networks PCL will ensure OJSC VolgaTelecom the entrance to attractive and growing market of the Republic of Tatarstan where to date the companies of Svyazinvest Group were represented only in mobile communications segment, – stresses OJSC VolgaTelecom’s General Director Vladimir Rybakin. – Furthermore, this transaction will allow us to substantially strengthen our positions in Ulyanovsk market”.

After closing of the transaction OJSC VolgaTelecom intends to delist Teleset Networks PCL shares from AIM of London Stock Exchange, which would allow for saving the costs for listing maintenance and also for cutting entertainment allowance  As it is expected the additional synergetic effect will be realized through centralization of administrative functions and marketing, as well as through cross-sales. 

If upon the expiry of 4 month period the Offer is accepted by less than 100% of the Company’s shareholders OJSC VolgaTelecom would compulsorily acquire the remaining shares under the Cyprus Companies Law.