Purposes for Reorganization

First stage

Second stage

The key steps that form the second stage of the reorganisation process are as follows:

  • Merging Svyazinvest with Rostelecom in compliance with the Russian Federation Presidential Decree No 340 “On the Reorganisation of Rostelecom OJSC” dated March 24, 2012. This will eliminate cross ownership between Svyazinvest and Rostelecom and will lead to the Federal Property Management Agency receiving a direct stake in Rostelecom’s share capital;
  • 20 subsidiaries of Rostelecom and Svyazinvest, which are either 100% directly owned by Rostelecom or are owned through Rostelecom’s and Svyazinvest’s 100% subsidiaries, will be all merged with Rostelecom at the same time;
  • Redemption of Rostelecomís shares held by Svyazinvest on the date of merger.

As a result of implementing the above measures, the amount of shares is expected to decrease after the cancellation of a portion of the treasury shares. This will allow the Company’s asset portfolio to increase by 1 share.