Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

New Share Issue For Svyazinvest


The Russian government will boost telecommunications holding company Svyazinvest's charter capital by issuing more shares, Interfax reported.

In response to a decree signed by President Boris Yeltsin in April on privatizing the company, a government ruling issued May 23 set the starting bid price at $1.18 billion for a 25 percent-plus-one-share stake to be sold to domestic and foreign investors.

An additional 24 percent of Svyazinvest is to be sold to portfolio investors, with the state retaining 51 percent.

Svyazinvest had long been touted as one of many state assets slated for auction through "open" tenders. But analysts, investment banks and potential advisers to the deal say they still have no knowledge of the terms or of a sale date.

Property officials will include in the holding's charter capital state packages in Rostelekom, the Central Telegraph, the Yekaterinburg City Telephone Network and Giprosvyaz.

Svyazinvest holds majority stakes in most of Russia's 85 regional phone utilities and long-distance provider Rostelecom. ()