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Articles & publications
26.05.2010
Svyazinvest offers incentives to shareholdersComNews, Anna Afanasieva
The subsidiaries controlled by Svyazinvest intend to pay out dividends for the first nine months of 2010, which is the first time the holding is to pay out interim dividends. This way Svyazinvest expects to create incentives for shareholders that will support the reorganization of the company as a merger of RTOs with Rostelecom and not present their shares for buyback.
As the press service of Svyazinvest announced, the Steering Committee of the holding (an advisory body which includes top managers of Svyazinvest and minority shareholders of RTOs and Rostelecom) yesterday supported a proposal for the Group’s companies to pay out interim dividends for the first nine months of 2010.
“The amount of dividends proposed for payout is equal to 10% of the net profit of the respective company for 9 months of 2010 for preferred shares, and 15% on common shares”, the press service said.
“This move is designed as an incentive so that shareholders will not present their RTO shares for buyback and thereby support the reorganization of Svyazinvest”, head of the Information Department of Svyazinvest Igor Pschenichnikov explained to a ComNews reporter.
Members of the Steering Committee reviewed information on the financial results of the Group’s companies for the first quarter of 2010. Aggregate net profit for all seven of Svyazinvest’s RTOs for the first three months of 2010 exceeded the respective 2009 indicator by 204%. According to the forecasts, the net profit of the Svyazinvest Group of companies for the first nine months of 2010 considerably exceeds the amount of the Group’s profit for all of 2009.
Svyazinvest holding consists of seven RTOs: CenterTelecom, North-West Telecom, VolgaTelecom, Southern Telecommunications Company, Uralsvyazinform, Sibirtelecom, Far East Telecom as well as Rostelecom, Central Telegraph and Giprosvyaz. At the end of 2009, the Russian government approved the reorganization of Svyazinvest as a merger between seven RTOs, Central Telegraph and Dagsvyazinform with Rostelecom. The annual general shareholders meetings of the companies slated for the merger with Rostelecom are to be held in June 2010. Then an offer will be made to exchange the holding’s shares for shares in the merged Rostelecom. After the term of the offer expires the holding will buy back the shares of shareholders that disagree with the swap.
At an expanded meeting of a panel of the Telecommunications Ministry which took place on May 12, 2010 the general director of Svyazinvest announced that according to recent guidance the holding’s net profit in 2010 will amount to some RUR 31 bln (up 8% compared to 2009). Based on financial reporting data of the companies, aggregate RAS net profit of RTOs amounted to RUR 23.3 bln in 2009, while Rostelecom’s 2009 profit equaled RUR 5.1 bln. The board of directors of RTOs recommended shareholders to approve 2009 dividends equal to 25% of net profit, while the board of director of Rostelecom has recommended paying out 30% of net profit. The decision to pay out 2009 dividends will be adopted by each of Svyazinvest’s subsidiaries at the annual general shareholders meetings which are scheduled to take place in June 2010.
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