VolgaTelecom Intends to Take over Teleset Networks PCL
OREANDA-NEWS. June 28, 2010. VolgaTelecom announced its intention to take over 100% of Teleset Networks PCL,
Immediately after the Offer was sent it was accepted by the owners of 98% of the shares of Teleset Networks PLC, in confirmation of which the respective purchase and sales agreements were signed. The transactions under these agreements are expected to be closed next week.
In line with the corporate procedures aimed at preparing for this transaction, VolgaTelecom has received all of the required corporate approvals, including authorization by the Board of Directors. In addition, preliminary consent has also been obtained from the Federal Anti-Monopoly Service of the
“This transaction fits perfectly with the overall business strategy of VolgaTelecom which provides for aggressively rolling out the broadband Internet segment, expanding into neighboring regions and strengthening positions on the fixed-line telecommunications market. In addition, the takeover fits squarely with the strategic goal of the Svyazinvest Group to establish a leading company on the Russian telecommunications market on the basis of Rostelecom” the chairman of the board of directors of VolgaTelecom and general director of Svyazinvest Evgeny Yurchenko pointed out.
Taking over Teleset Networks PCL will allow VolgaTelecom to enter an attractive and growing market, i.e. the Republic of Tatarstan where the Svyazinvest Group of companies are still represented only in the mobile telecommunications segment. What’s more, this transaction will enable us to substantially bolster our positions on the market in the
After the transaction is closed VolgaTelecom intends to have Teleset Networks PCL delisted from the AIM London Stock Exchange, which will allow the operator to save on listing expenses and reduce its representation expenses. Additional synergetic effects are expected to come from centralization of the managerial and marketing functions, as well as cross sales.
If less than 100% of the company’s shareholders accept the Offer within a deadline of four months, VolgaTelecom will execute a mandatory buyback of the remaining shares, exercising its rights pursuant to the legislation of the
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