All seven Svyazinvest subsidiaries apply for liquidation ahead of 'mega-regional merger'

28 Mar 2011

All seven regional subsidiaries controlled by Russian state-run telecoms holding company Svyazinvest have reportedly filed applications to liquidate themselves ahead of their integration with Svyazinvest’s key subsidiary, Rostelecom. Svyazinvest holds controlling stakes in all of the so-called ‘mega-regional’ operators: Center Telecom, North-West Telecom (NWT), VolgaTelecom, Southern Telecommunications, Uralsvyazinform, Sibirtelecom and Far East Telecom (DalSvyaz). In February 2009 Svyazinvest announced that it would undergo a structural reorganisation before pursuing full privatisation. The group revealed plans to merge Rostelecom with its regional operators to create a unified, national platform which will provide fixed line telephony, broadband and mobile services across the whole country. Last week the seven individual operators informed the Russian stock exchange that the trading of their respective shares will cease on 28 March, with all regional shares duly converted into Rostelecom shares on 1 April.