PRESS: Rostelecom may issue 20% of new shares to pay for Tele2

MOSCOW, Jul 5 (PRIME) -- Russian state-controlled telecom operator Rostelecom will issue some 20% of new shares to pay for consolidation of 45%-owned mobile operator T2 RTK Holding, working as Tele2, along with quasi-treasury shares and cash, business daily Kommersant reported on Friday, quoting sources.

A source close to Rostelecom told the daily that an ordinary share costs slightly over 90 rubles and a preferred share has a 16% discount, or 75.6 rubles, the source said.

An unnamed government official said the government had received a draft decree on state control over Rostelecom if it consolidates 100% of T2 RTK Holding.

“Rostelecom’s board of directors will meet after it has been signed in the next few days to consider parameters of the deal and arrange a date for an extraordinary meeting of the company’s holders,” a source said.

The remaining 55% of T2 RTK Holding belong to Tele2 Russia Holding AB, in which VTB has 50%, Alexei Mordashov’s Invintel B.V. has 40%, and Yury Kovalchuk’s Bank Rossiya has 10%.

(63.4013 rubles – U.S. $1)

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