Russian long-distance telecoms provider Rostelecom has rejected the idea of floating its quasi-treasury stock, but will list its shares on the London Stock Exchange (LSE), Vedomosti business daily quoted sources as saying on Tuesday.
Svyazinvest and Rostelecom declined to comment.
Last year Yevgeny Yurchenko, former CEO of Svyazinvest, the national telecoms holding, said Rostelecom might float 2.68% of ordinary shares of Rostelecom after its merger with regional fixed-income telecoms firms. The regional companies buy their shares from shareholders disagreeing with their merger with Rostelecom and contribute the shares to the capital of Mobitel, a Rostelecom subsidiary. The shares will later be swapped for Rostelecom stock and become quasi-treasury stock, Kommersant said.
It quoted a Svyazinvest source as saying that Rostelecom General Director Alexander Provotorov had said last year that the firm was in talks with its large minority shareholders of the merged company on selling their shares on the LSE to increase liquidity.
Rostelecom shares are traded in Russia and on the New York Stock Exchange.
Earlier in January, Communications Minister Igor Shchyogolev said the SPO should be held as soon as possible after the reorganization which should be over by April 1.
A minority shareholder told the paper Rostelecom was in talks with Prosperity Capital Management fund and Marshall Capital Partners fund, the largest minority shareholder of the merged Rostelecom. In November, Marshall Capital Partners purchased a stake equivalent to 7% in the united company from Gazprombank.
MOSCOW, January 25 (RIA Novosti)
