Svyazinvest not on the list of state-owned assets to be sold by 2015

22 Oct 2010

Russian telecommunications holding company Svyazinvest is not on the list of state-owned assets that the Russian government plans to sell by 2015, news agency ITAR-TASS has reported. However, the company, which is currently in the midst of implementing a widespread ‘mega-regional merger’ of its numerous telecommunications assets, has conceded that its shares may well be traded on international stock exchanges after the process is completed in 2012. First Deputy Prime Minister Igor Shuvalov commented: ‘Svyazinvest is not on the list. The question of its privatisation should be raised only after reorganisation. According to the strategy, the reorganisation of Svyazinvest will be completed by the spring of 2011. As a rule, before a company can place shares on an exchange it has to present auditable accounting documents for the previous year. Therefore, it would be proper to consider such a possibility from 2012. Our goal is not to retain as much stock as possible. As for the buyout of the shares from private investors, a decision will be made as reforms proceed, and as the free market price of the company’s shares is determined’. Shuvalov expressed hope that Svyazinvest’s restructuring process will increase the company’s capitalisation, and make it more transparent and attractive to investors, and thus capable of providing the full range of telecommunication services across Russia.

Russia, Svyazinvest