Rostelecom announces squeeze-out procedure for the remaining ordinary shares of Bashinformsvyaz

Moscow, Russia – August 27, 2015 – Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), (“the Company”) Russia’s national telecommunications operator, announces following the completion of the voluntary share buyback of Rostelecom ordinary shares from PJSC Bashinformsvyaz’s shareholders, the Company is now undertaking a mandatory squeeze out procedure for Bashinformsvyaz’s remaining ordinary shares, in accordance with Article 84.8 of the Russian Federation’s law On Joint Stock Companies. The share buyback process completes the consolidating 100% of Bashinformsvyaz’s ordinary shares, which was approved by Rostelecom’s Board of Directors in April 2015.

The shares will be purchased at a price of their market value, as determined by an independent appraiser, which is equal to RUB 8.87 per ordinary share. Share buyback requests will be collected until October 26, 2015. Rostelecom will pay a total sum of approximately RUB 300 million for the shares.

In line with the legislation, the shares of any shareholder who fails to submit their requests by October 26, 2015, will be mandatorily withdrawn, with a cash settlement paid into the account of a notary.

As a result of the voluntary buyback completed in July 2015, Rostelecom’s share of Bashinformsvyaz 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.

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.