Majority of Rostelecom shareholders approve mobile spin-off

2 Jan 2014

Shareholders in Russian national operator Rostelecom have voted in favour of a plan to spin off the company’s mobile assets into a new entity called RT-Mobile, the Prime business news agency reports. At an extraordinary general meeting on 30 December 2013, 85.2% of the shareholders present approved the spin-off; around 61.1% of the company’s shareholders were said to be in attendance. Stock holders who did not participate in the vote, or those who voted against the reorganisation, can now demand a share buyout before 13 February 2014, which will be implemented at a price of RUB123.9 (USD3.8) per common share.

As previously reported by TeleGeography’s CommsUpdate, Rostelecom’s mobile assets will be contributed to a joint venture with Tele2 Russia. The first phase of the merger will see Rostelecom contribute its standalone mobile subsidiaries and assets, including SkyLink, into a holding company called T2 RTK Holding. At the end of this process, Rostelecom will receive a 45% voting interest and a 26% economic interest in T2 RTK Holding. During the second stage, Rostelecom will spin off its integrated mobile businesses into its new wholly owned subsidiary, CJSC RT-Mobile, which will have Rostelecom’s mobile licences – including Long Term Evolution (LTE) concessions – re-issued to it. Upon completion of the spin-off, Rostelecom will contribute its whole stake in CJSC RT-Mobile into T2 RTK Holding, and increase its economic interest in T2 RTK Holding to 45%.

Russia, Rostelecom, Tele2 Russia