Rostelecom completes voluntary buyback of Bashinformsvyaz ordinary shares

Moscow, Russia – July 27, 2015 – Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, announces that it has completed the voluntary buyback of ordinary shares from PJSC Bashinformsvyaz’s shareholders. The voluntary buyback was the first stage of consolidating 100% of Bashinformsvyaz’s ordinary shares, which was approved by Rostelecom’s Board of Directors in April 2015.

Rostelecom acquired 25.7% of Bashinformsvyaz’s ordinary shares at a price of RUB 8.53 per share in accordance with the voluntary offer, which expired on July 24, 2015. Rostelecom will pay a total sum of RUB 2.08 billion for the shares no later than the date specified in the offer.

As a result of the transaction, Rostelecom’s share of Bashinformsvyaz has increased from 68.2% to 92.9%. This represents 96.5% of Bashinformsvyaz’s total ordinary shares, having previously represented 70.8% of total ordinary shares.

In accordance with Article 84.8 of the Russian Federation’s law On Joint Stock Companies, Rostelecom plans to undertake a mandatory squeeze out procedure for Bashinformsvyaz’s remaining ordinary shares. The shares will be purchased at a price not less than their market value, as determined by an independent appraiser.

The full consolidation of Bashinformsvyaz’s ordinary shares will enable Rostelecom to have a greater degree of corporate control, while helping to speed up the operational integration of the companies.