MOSCOW--(BUSINESS WIRE)--
MOBITEL ACQUIRES A MINORITY SHAREHOLDER STAKE IN ROSTELECOM
Moscow, Russia – November 15, 2013 – Rostelecom OJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that Rostelecom’s subsidiary LLC Mobitel has agreed to acquire 7.45% of Rostelecom’s ordinary shares from OJSC Gazprombank in a transaction worth RUB 25.2 billion. The deal sees Mobitel’s share of Rostelecom’s ordinary shares increase to 9.38%.
Gazprombank has also simultaneously obtained a stake in Rostelecom.
Sergey Kalugin, President of Rostelecom, commented: “This deal marks the completion of a certain period in the Company’s history. We are delighted that Gazprombank has joined our investor base having acquired the stake in the Company. Gazprombank’s acquisition follows the recent RUB 7.7 billion investment in Rostelecom by the Russian Direct Investment Fund and Deutsche Bank, deals which reflect the company’s desire to work with institutional investors with expertise in global TMT markets.”
Maria Florentieva, Vice President of Strategic Planning and Investor Relations commented: “The stake acquired by Mobitel may be used for transactions (including capital markets deals) aimed at diversifying shareholder structure of Rostelecom, and the success Rostelecom had in 2013 in terms of improving transparency and efficiency, updating our strategy and consolidating Svyazinvest’s assets, provides plenty of upside potential on Rostelecom’s fundamental value.”
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For more information please visit http://www.rostelecom.ru/en/ir or contact:
“Rostelecom Investor Relations / Rostelecom IR” application is now available to download for free from the Apple App Store and Google Play
Investor Relations Department
Tel. +7 (499) 995 97 80
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Rostelecom (www.rostelecom.ru) is Russia’s largest national telecommunications operator with presence in all Russian regions. The Group is a universal operator and undisputable leader of broadband and pay-TV markets in Russia with over 9.6 million fixed-line broadband subscribers and over 6.9 million pay-TV subscribers. As Rostelecom develops its mobile data networks, its position as a major mobile operator is growing with over 13.8 million currently subscribed to Rostelecom’s mobile voice services. The Group is also an important innovator that provides solutions in the field of medicine, E-Government, cloud computing and education.
Rostelecom was assigned a ‘BBB-’ and ‘BB+’ international credit ratings by Fitch Ratings and Standard & Poor’s respectively, both with a ‘Stable’ outlook. The Group generated RUB 154.1 billion of consolidated revenues, RUB 57.7 billion of OIBDA (37.4% of revenues) and RUB 13.7 billion of net income for the first six months ended June 30th, 2013.
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Certain statements in this press release are forward-looking statements within the meaning of the U.S. federal securities laws and are intended to be covered by the safe harbors created thereby.
Those forward-looking statements include, but are not limited to:
- Management’s assessment of the Company’s future operating and financial results as well as forecasts of the present value of future cash flows and related factors;
- the Company’s anticipated capital expenditures and plans to construct and modernize its network;
- the Company’s expectations as to the growth in demand for its services, plans relating to the expansion of the range of its services and their pricing;
- the Company’s plans with respect to improving its corporate governance practices;
- the Company’s expectations as to its position in the telecommunications market and the development of the market segments within which the Company operates;
- economic outlook and industry trends;
- the Company’s expectations as to the regulation of the Russian telecommunications industry and assessment of impact of regulatory initiatives on the Company’s activity;
- other statements regarding matters that are not historical facts.
Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include:
- risks relating to changes in political, economic and social conditions in Russia as well as changes in global economic conditions;
- risks relating to Russian legislation, regulation and taxation, including laws, regulations, decrees and decisions governing the Russian telecommunications industry, securities industry as well as currency and exchange controls relating to Russian entities and their official interpretation by regulatory bodies;
- risks relating to the Company, including the achievement of the anticipated results, levels of profitability and growth, ability to create and meet demand for the Company’s services including their promotions, and the ability of the Company to remain competitive in a liberalized telecommunications market;
- technological risks associated with the functioning and development of the telecommunications infrastructure, technological innovations as well as the convergence of technologies;
- other risks and uncertainties. For a more detailed discussion of these and other factors, see the Company’s Annual Report and the Company’s other public filings.
Many of these factors are beyond the Company’s ability to control or predict. Given these and other uncertainties, readers are cautioned not to place undue reliance on any of the forward-looking statements contained herein or otherwise. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements (which are made as of the date hereof) to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.