The board of Russian national operator Rostelecom have approved the transfer of part of its treasury share allocation, representing approximately 2.6% of the telco’s ordinary shares, to its subsidiary Mobitel. The company’s annual general meeting (AGM), which is due to be held on 15 June 2015, will see the board vote on the cancellation of the remaining treasury shares, amounting to 3.5% of ordinary and 13.7% of preferred shares, respectively. In addition, Mobitel has signed an agreement with the Federal Agency for State Property Management (Rosimushchestvo) regarding the management and voting of the Rostelecom shares owned by Mobitel and Rosimushchestvo; this agreement was initiated by Rosimushchestvo.
Sergey Kalugin, president of Rostelecom, commented: ‘The company has reached a well-considered decision to transfer a portion of our treasury shares to Mobitel and cancel the remaining shares. The result is a solution that best meets the needs of multiple groups of shareholders. Cancelling the remaining treasury shares will proportionally increase all shareholders’ stake in Rostelecom. The shares that sit on Mobitel’s balance sheet should be viewed as an asset, which could be used for future fund raising through a secondary public offering (SPO), or for M&A activity.’