Investor Protection Association (IPA) and OAO Svyazinvest agree to establish an Advisory Council to discuss development issues related to the holding’s companies  

Svyazinvest’s management and Investor Protection Association (IPA) have signed a Memorandum on mutual collaboration, which provides for creation of an Advisory Council (hereinafter, the Council) to ensure permanent and constructive dialogue on key issues of the development of the holding’s companies.  

As the signed Memorandum reads: ‘The Council is to become a consultative body aiming to provide active intercommunication among its members in order to ensure close cooperation and mutual understanding between Svyazinvest and the investment community. 

The scope of issues for discussion will include matters of investment policy and budget planning, internal and external audit, entering new markets or termination of certain activities, proposing BoD candidates by ADR holders, implementation of ERP systems, improvement of corporate governance, fund raising, disposal of assets, M&A deals, etc.  

Under the Memorandum, “in setting up the Council, both parties were guided by the fact that both Svyazinvest and IPA, the latter representing the interests of minority shareholders and investors of the holding’s companies, are committed to facilitating capitalization growth and raising the shareholder capital of Svyazinvest subsidiaries and affiliates".

 

To participate in the Council each side has proposed 12 representatives. Members from IPA included Stanislav Vartanian, Executive Director, independent directors and minority shareholders’ representatives on Svyazinvest companies’ BoDs. Svyazinvest participants will be presented by Valery Yashin, Director General, Vadim Belov, Georgy Romskiy, Yevgeny Yurchenko, Deputies Director General, as well as heads of the holding’s key departments.

 

Meetings of the Council may be convened by any party usually once a month (as required). 

 

OAO Svyazinvest comprises 7 mega-regional companies: OAO CenterTelecom, OAO North-West Telecom, OAO VolgaTelecom, OAO South Telecommunications Company, OAO Uralsvyazinform, OAO Sibirtelecom, OAO Far East Telecom, national ILD and DLD telecom provider OAO Rostelecom, 4 telecom operators not involved in the merger and industry design institute Giprosvyaz. Svayzinvest companies are licensed to provide local, long-distance and international telecommunication services, as well as data transmission, Internet access, ISDN, wireless subscriber access and GSM, NMT-450, AMPS and DAMPS-standard mobile communication. The holding employs a workforce of 338,000.

 

For more information, please view https://www.svayzinvest.ru.

 

Investor Protection Association was founded in 2000 and consists of 30 leading Russian and foreign investors with a total amount of investments in excess of USD 20 bln.

 

IPA members: Brunswick Capital Management; Brunswick UBS Warburg Nominees; Dart Management; Deutsche Bank AG; Hermitage Capital Management; NCH Advisors; MC Trustco; Pioglobal Asset Management; Prosperity Capital Management; Templeton; IFC Metropol; The U.S.-Russia Investment Fund; Troika Dialog Asset Management; United Financial Group; Your Financial Trustee Co; Nikoil-Management; Vostok Nafta Investment Ltd.; Hagstromer & Qviberg Fondkommission; Sun Capital Partners; Alfa - Bank; FG Veb-Invest; IC Prospect.

 

For more information and comment, please contact Oleg Rumiantsev at (095) 980-64-58, 980-64-54, 980-64-59.