Wednesday, August 23, 2017

Rostelecom sells 7.45 percent stake to subsidiary Mobitel

Russian telecommunications company Rostelecom announced recently that it has sold 7.45 percent of its ordinary shares to its Mobitel subsidiary.

The transaction, valued at $770 million, was brokered through an arrangement with Gazprombank. As a result, Mobitel now holds a 9.38 percent stake of its parent company.

"The stake acquired by Mobitel may be used for transactions (including capital markets deals) aimed at diversifying the shareholder structure of Rostelecom," Rostelecom Vice President of Strategic Planning and Investor Relations Maria Florentieva said. "The success Rostelecom had in 2013 in terms of improving transparency and efficiency, updating our strategy and consolidating assets provides plenty of upside potential on Rostelecom's fundamental value."