Russian national operator Rostelecom has announced that its shareholders have approved the decision to reorganise the company by merging Svyazinvest and 20 other companies, which are either directly or indirectly owned by Rostelecom and/or Svyazinvest. The number of shareholders who participated in the Extraordinary General Meeting (EGM) comprised 61.6% of the total number of voting (ordinary and preferred) shares. In the event 97.7% of participating shareholders voted in favour of the company’s reorganisation. Following the merger the Russian Federation will own more than 50% of Rostelecom, as was laid out in the Presidential Decree which initiated Rostelecom’s reorganisation.
Sergey Kalugin, president of Rostelecom, commented: ‘We are approaching the final step of the second stage of the Group’s reorganisation. In fact, we have passed the point of no return and all that is left to complete this stage are formal procedures relating to the mandatory buyout and on the legal reorganisation, when the merged companies will cease to exist as separate legal entities, and their assets and liabilities transfer to Rostelecom. The reorganisation will eliminate the cross-ownership between Rostelecom and Svyazinvest and put in place a more transparent and simplified shareholder structure for the Group. Furthermore, Rostelecom will obtain a number of interesting assets from Svyazinvest. These latest steps significantly boost the investment attractiveness of the merged company’.