* To delist American Depositary Receipts
* To remain listed on local stock exchanges
* Says delisting will free up resources
(Adds details, background)
MOSCOW, Dec 11 Rostelecom ROS.N, Russia's
largest long distance call operator, said it would delist from
the New York Stock Exchange as part of a reform of the state
telecoms sector, though it will remain listed on local bourses.
The Russian government plans to combine seven state-run
regional telecoms groups under Rostelecom with the aim of
boosting efficiency and market share of their controlling
shareholder, Svyazinvest. [ID:nLK486977]
Sources earlier said Rostelecom was likely to delist its
American Depositary Receipts, which originally accounted for
less than 5 percent of the company's equity, from NYSE as they
would complicate the merger.
"The decision to delist from the NYSE will free up a
significant amount of capital and administrative resources
necessary for the company's strategic development," Chairman
Yevgeny Yurchenko said in Friday's statement.
Rostelecom also said that trading in its shares on Russian
bourses (RTKM.MM) (RTKM.RTS) accounted for more than 99 percent
of its overall trading volumes over the past 12 months.
Yurchenko, who is also the chief executive officer of
Svyazinvest, said in May that the reformed company could make a
public share offer once its reorganisation is complete, and that
the offer would not take place on the NYSE. [ID:nLU70615]
(Reporting by Maria Kiselyova; Editing by Greg Mahlich)