Tycoon scoops up Rostelecom minority stake

2 Nov 2011

Russian tycoon Suleiman Kerimov has reportedly purchased a 6% stake in national operator Rostelecom fromYevgeny Yurchenko, one of the telecoms firm’s most prominent minority shareholders. Reuters reports that Yurchenko, the former chief executive of Rostelecom’s state-owned holding company Svyazinvest, does not intend to extricate himself from Rostelecom entirely, however, and retains a 2% stake in the company. Whilst the stake was worth as much as USD900 million based on Monday’s share price, Reuters says that the deal was likely to be priced at a significant discount, after a number of margin calls on the shares bought by Yurchenko. Rostelecom’s stock has lost over 20% of its value over the past three months, and earlier this week its board approved a share buyback of up to USD500 million.

Russia, Rostelecom