Rostelekom OAO Outlines Share Buyback Procedure as Part of Second Stage of Its Reorganization
Rostelekom OAO (Rostelecom) announced that it has outlined the share buyback procedure as part of the second stage of the Company’s reorganization. During the 45 days following the Extraordinary General Meeting of June 26, 2013, shareholders who voted against the reorganization, or abstained from voting, tendered 21.5% of ordinary shares and 58.6% of preferred shares, of which Russian legislation recognized 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%.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.
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