3 Sep 2010 12:49

NWT completes buyback of shares from dissenting shareholders

ST. PETERSBURG. Sept 3 (Interfax) - On Thursday, St. Petersburg-based North-West Telecom (NWT) finished its buyback of shares from shareholders who are in disagreement about the reorganization of the company's ownership, the telecom said in a statement.

NWT bought back 52,419,047 shares (4.6% of charter capital), including 5,437,821 common shares and 46,981,226 preferred shares. A total of 1.1 billion rubles went to the buyback.

It was earlier reported that NWT shareholders voted for the telecom's merger with Rostelecom . The conversion ratio is 4,102 shares in NWT to one Rostelecom common share. The purchase price for common and preferred shares stands at 21.01 rubles per share.

The company's deputy general director for corporate elations, Ella Tomilina, earlier told Interfax that funds for the buyback had been earlier earmarked. Therefore, NWT did not have to raise loan funds for this project.

The company's charter capital comes to 1,131,414,077 rubles divided into 881,045,433 common shares and 250,369,377 preferred shares at a face value of one ruble each.

North-West Telecom is the incumbent fixed-line operator in Russia's northwest. Svyazinvest owns 50.76% of voting shares (39.528% of charter capital).