Rostelecom Shareholders Approve Merger of Mobile Assets with Tele2 Russia
Published on: 2nd Jan 2014
By: Ian Mansfield
Russia's Rostelecom says that its shareholders have approved plans to spin off its mobile assets and then merge them with those of Tele2 Russia.
The mobile assets have a book value of RUB 19.5 billion -- including telecoms equipment and intellectual property rights. Rostelecom will end up with 45% of the joint venture once all the formalities have been completed.
The shareholders who participated in the EGM collectively hold 61.1% of voting shares (both ordinary and preferred). 85.2% of these shareholders voted in favour of the plan.
Sergey Kalugin, President of Rostelecom, commented: "By combining assets, the JV's market share by subscribers will be 16%. The new company will have a complete portfolio of frequencies and will operate commercially in 64 Russian regions. We believe that we are in fact creating a national mobile operator that has all the opportunities to be competitive on a national scale, and have great growth potential."
The new joint venture will have a subscriber base of approximately 38 million customers.