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Deposit Insurance, Vnesheconombank To Purchase 40% Stake In Rostelecom From KIT Finance

Both the firms would acquire approximately 291.48 million shares of Rostelecom

Deposit Insurance Agency, the deposit insurance system regulator, and Vnesheconombank, a provider of corporate banking services, have agreed to take over 40% stake in Rostelecom OAO from KIT Finance, a diversified financial group. All the three parties are based in Russia.

As per the terms of the agreement, Deposit Insurance and Vnesheconombank will acquire approximately 291.48 million shares of Rostelecom, at the price of RUB230 ($7.01) per share.

Deposit Insurance is expected to acquire 30% stake and Vnesheconombank would get 10% stake in Rostelecom. Deposit Insurance’ 25% stake would be later transferred to Vnesheconombank, so that the latter does not have to make a mandatory takeover bid to Rostelecom’s minority shareholders.