Rostelecom OJSC: ROSTELECOM OUTLINES SHARE BUYBACK PROCEDURE AS PART OF THE SECOND STAGE OF ITS REORGANISATION UK Regulatory Announcement MOSCOW ROSTELECOM OUTLINES SHARE BUYBACK PROCEDURE AS PART OF THE SECOND STAGE OF ITS REORGANISATION Moscow, Russia – August 16, 2013 – Rostelecom OJSC (the “Group”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that it has outlined the share buyback procedure as part of the second stage of the Company’s reorganisation^1. During the 45 days following the EGM^2, shareholders who voted against the reorganisation, or abstained from voting, tendered 21.5% of ordinary shares and 58.6% of preferred shares, of which Russian legislation recognised the requirement to buyback 20.8% of ordinary shares and 55.8% of preferred shares. In accordance with Russian legislation restricting share buyback to 10% of the value of a company’s net assets, the volume of buyback requests will be proportionately reduced and shares will be bought back at a rate of 31.4%^3.The buyback will amount to RUB 30.253 billion. The Company will complete share buyback payments by September 9, 2013. As a result, the Company will acquire 6.5% of its own ordinary shares and 17.5% of preferred shares. * * * 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 firstname.lastname@example.org * * * 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 9.5 million fixed-line broadband subscribers and over 6.8 million pay-TV subscribers. As Rostelecom develops its mobile data networks, its position as a major mobile operator is growing with over 13.5 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 77.1 billion of consolidated revenues, RUB 28.8 billion of OIBDA (37.4% of revenues) and RUB 6.4 billion of net income for the first three months ended March 31, 2013. * * * 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. ^1 The decision about reorganising OJSC Rostelecom by merging it with OJSC Svyazinvest and 20 other companies (either directly or indirectly 100% owned by OJSC Rostelecom and/or OJSC Svyazinvest) was taken at the EGM, which took place on 26 June, 2013. ^2 This timeframe is specified in article 76, point 3 of the law “On Joint-Stock Companies”. ^3 Article 76, point 5 of the law “On Joint-Stock Companies” Contact: Rostelecom OJSC
Rostelecom OJSC: ROSTELECOM OUTLINES SHARE BUYBACK PROCEDURE AS PART OF THE SECOND STAGE OF ITS REORGANISATION
Press spacebar to pause and continue. Press esc to stop.