OREANDA-NEWS. September 16, 2010. VolgaTelecom has executed in full its obligation to buy back the shares presented by shareholders within the framework of the ongoing reorganization of VolgaTelecom as a merger with Rostelecom.

The buyback was performed in accordance with the Report on the Results of Share Buyback Demands Made by the Shareholders of VolgaTelecom on the buyback of the shares they own, which was approved by Decision of the Board of Directors of VolgaTelecom (Minutes dated August 11, 2010, # 5).

The total number of shares bought back by the company amounts to 25,429,119, which is equal to 7.75% of the charter capital of VolgaTelecom, including:

common shares – 3,450,386;

preferred shares – 21,978,733.

The amount of funds allocated to the share buyback totaled RUR 2,460,013.

Shares presented for buyback were purchased in full at the price of RUR 96.74.  Payment for the repurchased shares was made in cash and in the format shown in the shareholder’s request.

The decision about the reorganization of VolgaTelecom as a merger with Rostelecom was approved at the Annual General Shareholders Meeting on June 21, 2010.  All in all, shareholders owning a total of 64.3394% of voting shares (common and preferred shares) took part in the voting on the merger issue.  In addition, 92.6786% of the company’s shareholders voted in favor of the merger.