Rostelecom Outlines Share Buyback Procedure
OREANDA-NEWS. Rostelecom OJSC (the “Group”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia's national telecommunications operator, today announces that it has outlined the share buyback procedure as part of the second stage of the Company's reorganisation1.
During the 45 days following the EGM2, shareholders who voted against the reorganisation, or abstained from voting, tendered 21.5% of ordinary shares and 58.6% of preferred shares, of which Russian legislation recognised the requirement to buyback 20.8% of ordinary shares and 55.8% of preferred shares.
In accordance with Russian legislation restricting share buyback to 10% of the value of a company's net assets, the volume of buyback requests will be proportionately reduced and shares will be bought back at a rate of 31.4%3.The buyback will amount to RUB 30.253 billion.
The Company will complete share buyback payments by September 9, 2013. As a result, the Company will acquire 6.5% of its own ordinary shares and 17.5% of preferred shares.
1 The decision about reorganising OJSC Rostelecom by merging it with OJSC Svyazinvest and 20 other companies (either directly or indirectly 100% owned by OJSC Rostelecom and/or OJSC Svyazinvest) was taken at the EGM, which took place on 26 June, 2013.
2 This timeframe is specified in article 76, point 3 of the law “On Joint-Stock Companies”.
3 Article 76, point 5 of the law “On Joint-Stock Companies”