OREANDA-NEWS. September 16, 2010. The board of directors of Rostelecom (RTS and MICEX: RTKM, RTKMP; OTC: ROSYY) has approved a report on the results of shares presented for buyback and owned by shareholders vested with the relevant right according to Article 75 of the Federal Law “On Joint Stock Companies”, since at the shareholders meeting held on June 26, 2010 there were some shareholders that voted against or failed to participate in the voting on the issue of a merger between seven regional operators, Dagsvyazinform and Rostelecom.

According to the approved report, shareholders presented demands to buy back 579,423 common shares worth RUR 49,952,057 and 88,496,665 preferred shares worth RUR 7,629,297,490.

In addition, demands to buy back 182,519 common shares worth RUR 15,734,963 and 84,598,692 preferred shares valued at RUR 7,293,253,237 were recognized as consistent with the relevant legislation.  Thus, the total value of shares presented for buyback under demands recognized under the relevant legislation amounted to RUR 7,308,988,200.

No more than 10% of the value of the Company’s assets can be spent on share buybacks, which was RUR 6,051,400 as of March 31, 2010.  According to Article 75.5 of the Federal Law “On Joint Stock Companies” shares are to be bought back in proportion to the demands made, which means that the Company will be buy back 82.7% of all shares presented for buyback.

Rostelecom completed acceptance of shareholders’ demands on the buyback of their shares in accordance with Article 75 of the Federal Law “On Joint Stock Companies” on August 10, 2010.  Buyback of and payment for shares will be carried out within the existing legislative deadline, i.e. no later than 30 days from the date on which the Company ceases to accept written buyback demands for shares owned by its shareholders, which means no later than September 10, 2010.