OREANDA-NEWS. September 09, 2011. Rostelecom OJSC (MICEX & RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, announces that it has acquired a 49% stake in CJSC Orenburg – GSM (“Orenburg – GSM”) from SMARTS Group for a total cash consideration USD 4 million (approximately RUB 115.6 million[1]). As a result, Rostelecom now holds a 100% stake in Orenburg – GSM, reported the press-centre of Rostelecom

Orenburg – GSM provides GSM mobile services in Orenburg region and its major cities Orenburg, Orsk, Novotroitsk, Mednogorsk, Buzuluk, Buguruslan, Kuvandyk, Sol-Iletsk and others. The company accounted for 185 thousand subscribers at the end of the first quarter of 2011, and an 8%[2] share of the region’s GSM market as at the end of 2010. For the full year of 2010 Orenburg – GSM reported RAS revenues of RUB 194 million and EBITDA of RUB 32.6 million with an EBITDA margin of 16.9%. The Company’s net cash totaled RUB 2.4 million as at June 30, 2011.

Alexander Provotorov, President of Rostelecom, commented: “The increase of our ownership in Orenburg – GSM to 100% provides us with a full control over the mobile operator and will help us to develop the company in a more efficient way for the benefit of the new Rostelecom and its shareholders. Taking into account the recently announced consolidation of 100% stake of Volgograd – GSM, the Rostelecom’s mobile subscriber base has increased by 7%[3].”

[1] Exchange rate of Central Bank of Russia as of September 2, 2011

[2] According to Orenburg-GSM’ data

[3] Rostelecom susbscriber base as of March 31, 2011.