Monday, August 21, 2017

Rostelecom shareholders approve reorganization of mobile operations

Rostelecom shareholders recently decided to reorganize the company through the allocation of mobile operations valued at $590 million in a subsidiary of RT-Mobile.

The decision came at the extraordinary shareholders' meeting on Dec. 30, which was attended by 61.1 percent of the shareholders with voting shares. Of those shareholders, 85.2 percent voted for the reorganization.

The reorganization will involve the allocation of RT-Mobile assets, which will help to develop mobile operations. This will come through a joint-venture with the company's Tele2 Russia asset. It is assumed that the end of Rostelecom will put 100 percent of RT-mobile shares into the capital of T2 Rus Holding.

"We are pleased that shareholders supported the reorganization in the form of allocation of mobile assets into a separate subsidiary," Rostelecom President Sergei Kalugin said. "This important step is part of our overall strategy. Soon we will bring these assets to share capital ' T2 Rus Holding' and formally concluded a joint venture with Tele2 Russia. By combining assets market share of subscribers from the joint venture will be 16 percent, the new company will have a complete portfolio of frequency and maintain business operations in 64 regions of Russia. We believe that creating a national mobile operator, has all the opportunity to compete at the federal level and has significant growth potential."