Sibirtelecom breaks the ice with first approval of Rostelecom mergers

8 Jun 2010

Reuters reports that the shareholders of Russian regional fixed and mobile network operator Sibirtelecom have approved a planned merger with its sister long-distance operator, Rostelecom, as part of a major restructuring of parent group Svyazinvest. The corporate reorganisation will see regional telcos across Russia merged under the nationwide Rostelecom banner, with the aim of improving efficiency and boosting the group’s market share. Sibirtelecom’s shareholders were the first among Svyazinvest-controlled operators to vote on the restructuring, with holders of nearly 60% of the Siberian telco’s stock approving the move. The report says that the conversion price for Sibirtelecom shares is set at RUB2.59 (USD0.081) per ordinary share and RUB2.03 per preferred share, with the buyout price for those who vote against set at RUB1.85. Other Svyazinvest units, including Rostelecom, Southern Telecom, North-West Telecom, VolgaTelecom, Uralsvyazinform, Centertelecom and Dalsvyaz, will vote on the restructuring at annual general meetings scheduled over the next month.

Russia, Rostelecom, Sibirtelecom, Svyazinvest