Rostelekom OAO Approves Issue of Additional Ordinary Shares as Part of Second Stage of Reorganization
Rostelekom OAO (Rostelecom) announced that its Board of Directors has approved the decision to increase Rostelecom's share capital through the issue of an additional 1,582,234,000 ordinary shares. The decision was taken at a meeting of the Board of Directors, held on August 5, 2013. As a result of the second stage of the reorganization 1,071,502,300 of the newly issued shares are planned to be placed in favor of Rosimuschestvo, a Svyazinvest shareholder. The remaining shares will only be technically issued and will be canceled in-line with legal requirements. Once the reorganization is complete, Rostelecom’s share capital structure is expected to be divided into 2,669,204,301 issued ordinary shares and 242,831,469 issued preferred shares (following the cancellation of 1,345,556,268 ordinary shares currently held by Svyazinvest). The additional share issue is being conducted to facilitate the merger of Svyazinvest and 20 other affiliate companies with Rostelecom, which has been designed to eliminate the cross-ownership between Rostelecom and Svyazinvest.
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