Reorganization to spin-off intergrated mobile assets
The second stage of the JV process sees Rostelecom contribute its integrated mobile businesses and integrated licenses (including LTE) to the JV, subject to an internal reorganisation which is required to effect the transfer.
As part of the reorganization process the following key steps have been made:
- Extraordinary Shareholders Meeting (EGM): the EGM that took place on 30 December, the Company‘s shareholders voted to approve the Company’s reorganisation in the form of spinning off its mobile assets (including telecommunications equipment and intellectual property rights), into its subsidiary company, CJSC RT-Mobile.
- Obligatory buyback: during share buyout which took place as part of the Company’s reorganisation, Rostelecom acquired 6.1% of its own ordinary shares and 13.7% of its preferred shares.
- The registration of CJSC RT-Mobile with the Russian Tax authority: CJSC RT-Mobile, the Company’s wholly-owned subsidiary, was registered at the Official Single Register of Legal Entities on April 1, 2014.
The Company still has a number of significant steps to accomplish before licenses are reissued and RT-Mobile is transferred into the JV.
After the spin-off has been completed, it is assumed that Rostelecom will integrate 100% of RT-Mobile’s shares into the share capital of the JV.