Svyazinvest to restructure; IPO planned

1 Jun 2009

The Russian government has cleared the reorganisation of incumbent Russian telecoms group Svyazinvest under the umbrella of long-distance carrier Rostelecom, The Moscow Times reports. Deputy Prime Minister Sergei Ivanov called for an overhaul of the management and structure of the company because the current setup ‘impedes its effective development and weakens competitiveness.’ General Director of Svyazinvest, Yevgeny Yurchenko has also revealed that the company may hold an initial public offering (IPO) to offload part of the government’s 75% share once the reorganisation has been completed. Yurchenko said the final reorganization plan would be approved in the summer and that the IPO, if held, would take place on western stock exchanges, but not on the New York Stock Exchange.

Russia, Rostelecom, Svyazinvest