Russian national telecom operator Rostelecom has formally requested the approval of the Federal Financial Markets Service (FFMS) to list 25 percent of its preferred shares on the London Stock Exchange (LSE), the company announced on Monday. Rostelecom intends to float 60.707 million Class A preferred shares in London, or about 25 percent of its outstanding preferred stock, news agency RIA Novosti reported.
Rostelecom had previously considered a secondary public offering (SPO) earlier this year, but decided to postpone it in March due to unfavorable conditions on the capital markets. The telecom operator could hold its SPO as early as the end of 2011, Rostelecom President Alexander Provotorov said last month.
The SPO of Rostelecom, which is already listed on both the Russian and London stock exchanges, aims to “give more liquid shares to investors and attract new foreign investors,” news agency ITAR-TASS quoted Provotorov as saying.
Rostelecom’s press service could not be reached yesterday to comment on the issue.
Since September 1st, Rostelecom’s ordinary shares have been included in the MSCI Russia Standard index, becoming the second telecom company – after MTS – included in the index.
As a result of a recent reorganization and merger process, the Russian state controls 53,23% of Rostelecom, in particular through the participation of Svyazinvest, the state-owned telecom holding which holds a 43.37% stake in Rostelecom.
Update December 16, 2011
The British financial market regulator needed more time to approve Rostelecom’s proposal, prompting the company to postpone its offering until early 2012, Reuters reported.
