OREANDA-NEWS. February 08, 2011. A regular meeting of the Board of Directors, Svyazinvest discussed the issue of the company’s 2010 auditor and recommended the general meeting of shareholders to approve KPMG as its auditor.

The board also heard a report on the Program to Sell Non-Core Assets of the Svyazinvest Group of companies, which was prepared by the Managing Committee for the Reorganization of Svyazinvest in accordance with instructions from the First Vice-Prime Minister Igor Shuvalov.

The non-core assets of the Svyazinvest Group are participatory investments in companies and real estate, which are not related to the holding's primary form of activity.  Non-core assets divert significant administrative and financial resources which could be used more effectively to management the main business.  At present, the non-core assets of the Svyazinvest Group are valued at RUR 7.5 bln.  The potential economic effect from the Program to Sell Non-Core Assets could be about RUR 3 bln, including RUR 2.3 bln from the sale of real estate and RUR 700 mln from the sale of stakes in non-core companies and portfolio investments.

The program, which is expected to last 2-3 years, shows the necessary structure for all the assets of the merged company and provides recommendations for divesting non-core assets.  In addition, the starting date for this program has still not been set, since the main subsidiaries of Svyazinvest which hold non-core assets are currently in the process of reorganization.  In order to determine the ratios for swapping RTO shares into those of Rostelecom the proprietary complex was appraised for the companies slated for the merger, and the sale of major assets before the merger process is completed could cause a negative reaction among shareholders.

For this reason, the Board of Directors adopted a decision to postpone the approval of the Program to Sell Non-Core Assets Assets of the Svyazinvest Group of companies until the merger is completed between Rostelecom, RTOs and Dagsvyazinform.  The board instructed the Company’s executive bodies to commence examination of the Program to Sell Non-Core Assets Assets at the Board of Directors of Rostelecom once the merger of the Svyazinvest Group of companies is completed.

Among other items on the agenda, the Board of Directors passed a resolution which states that it is not advisable to introduce the position of Corporate Secretary at the company.  This resolution reflects a resolution from the State Property Management Agency, which conducts a policy aimed at enhancing corporate governance at companies with state-held capital.

In addition, the board adopted a decision to convene an extraordinary general meeting of shareholders of the company.  The board elected Ivan Rodionov to preside at this and other EGMs in the near future in case the Chairman of the Board of Directors is unable to attend these meetings.

The Board of Directors also reviewed other issues related to the internal activity of the Company.

The Board of Directors of the company was attended by the following persons:

Mikhail R. Butrin, managing director, co-head of the investment banking department on global markets, VTB-Capital;

Konstantin V. Malofeev, managing partner of the representative office of MarCap Advisors Limited;

Marlen J. Manasov, member of the board of directors of UBS Bank;

Leonid D. Reiman, member of the board of directors of Svyazinvest;

Ivan I. Rodionov, professor of state university Higher School of Economics;

Nikita D. Ryauzov, managing director, head of the investment banking and financing department of MDM Bank;

Evgeny V. Yurchenko, member of the board of directors of Svyazinvest.