Recent news
12.08.2010
Report on the Results of Shares Presented by Shareholders for Buyback approvedPress Release
On August1, 2010 a meeting of the Board of Directors of Uralsvayzinform was held, at which the Report on the Results of Shares Presented by Shareholders for Buyback was approved. In accordance with the legislation, the share buyback is to be completed no later than September 8, 2010.
On June 23, 2010 the annual general shareholders meeting of Uralsvyazinform adopted a decision to reorganize the Company as a merger between Uralsvyazinform and Rostelecom. In accordance with the legislation of the Russian Federation, the shareholders that voted against this decision or which failed to take part in the voting received the right to demand the Company to buy back all or part of the shares which they own. The deadline for accepting applications from shareholders is August 9, 2010.
The total number of shares subject to buyback in accordance with the Report is equal to 715,189,119 (1.8% of the Company’s charter capital), including 214,854,899 common shares and 500,334,220 type A preferred shares.
The total amount of funds allocated for share buyback amounts to RUR 700,885,300, or 2.4% of the value of Uralsvyazinform’s net assets as of the date on which the decision was adopted to proceed with the reorganization (by law, up to 10% of the value of net assets can be allocated for share buyback).
Shares presented for buyback are to be repurchased at the price approved by the Board of Directors – RUR 0.98 per one common share and RUR 0.98 per one type A preferred share. Payment for shares to be bought back is to be made in cash by September 8, 2010.
First deputy general director of Uralsvyazinform Sergey Frolov had the following to say: “The vast majority of shareholders decided not to bail out of their securities, which points to their support of the upcoming reorganization. I think our shareholders share our confidence that the merged national operator to be formed on the basis of Rostelecom will receive powerful impetus for expansion, bolster its market positions and raise its economic efficiency. As a result, the shares of the merged company will have a strong outlook on the stock market, becoming a top blue chip. Another reason to hold on to the shares is the Company’s intention to pay out interim dividends (9M 2010). Based on a preliminary forecast, the size of interim dividends will be bigger that those approved for FY 2009”.
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