OREANDA-NEWS. October 08, 2010. Rostelecom (the Company, RTS and MICEX RTKM, RTKMP; OTC: ROSYY) has executed on time and in full its obligations to pay for the shares that were presented for buyback by shareholders who failed to support the reorganization by way of a merger between the national operator and seven regional telecommunications operators, and Dagsvyazinform at the shareholders meeting of Rostelecom held on June 26, 2010.

The amount of cash set aside for the buyback under execution of obligations amounted to RUR 6.1 bln (or approximately USD 194.7 mln), which is equal to the value of 151,113 common shares (0.02074% of the total value of common shares outstanding or 0.01555% of the charter capital), and 70,041,903  preferred shares (28.84383% of the total number of preferred shares outstanding or 7.20945% of the charter capital), based on buyback price of RUR 86.21 per one share1.

As of the end of the day on August 10, 2010, the deadline envisaged by law, shareholders forwarded their buyback demands to the Company pursuant to the effective legislation worth a total of RUR 7.3 bln (or roughly USD 235.2 mln)2. All in all, no more than 10% of the value of net assets should be allocated to the buyback of these shares, which, as of March 31, 2010 amounted to RUR 6.1 bln (or about USD 194.7 mln).