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A formal completion of transaction whereby Russian national long-distance operator Rostelecom sells its 50 per cent stake in Sovintel to Golden Telecom has taken place today.
Pursuant to the terms of the deal, Rostelecom sells to Golden Telecom its 50 per cent stake in the telecommunications operator Sovintel. In exchange for the stake in Sovintel Rostelecom is receiving $56 million in cash, 15% of Golden Telecom’s shares and representation on Golden Telecom’s Board of Directors.
During the meeting among representatives of the companies involved in the deal, a set of documents was signed, regulating acquisition by Rostelecom of 15 per cent stake in the holding company and representation on the Board of Directors of Golden Telecom. The documents included Subscription Agreement, Standstill Agreement, Registration Rights Agreement and a new Shareholders Agreement etc.
Serguei I. Kuznetsov, General Director of Rostelecom, and Alexander A. Lutsky, Chief Accountant of the Company, participated in today’s meeting on behalf of Rostelecom.
As the General Director of Rostelecom Serguei I. Kuznetsov stated after the signing ceremony “this event has become the next stage in implementation of the Company’s strategy to spin off non-core assets. Today we are trying to realign the structure of Rostelecom in such a way that the Company could be in a position to independently tackle the issues it faces, not through it’s affiliated companies”. Mr. Kuznetsov also noted that the deal would be reflected in the Company’s financial statements for the year 2002.
Gamma Group and Clifford Chance Punder acted as advisors to Rostelecom. Golden Telecom was advised by Alfa Group and LV Finance. |
