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. Last Updated: 07/27/2016

Svyazinvest Plans to List on NYSE in 2003

Investors could be trading Svyazinvest's consolidated mega-operators on the U.S. stock exchange by 2003, according to a timetable laid out by company representative Sergei Chernogorodsky at a securities market conference in St. Petersburg on Wednesday.

Revealing another sliver in Svyazinvest's gargantuan consolidation plan, calling for the merging of 86 operators into seven, Chernogorodsky projected the release of level-one American Depositary Receipts for four of its subsidiaries to begin in May or June of 2001, with level-two ADRs to be launched by April 2002 and level-three issued in 2002 or 2003, conference participants said.

The four companies to be listed next year are St. Petersburg Telephone, Moscow Regional Elektrosvyaz, Novosibirsk Elektrosvyaz and Primorye Elektrosvyaz. The lift to level-two ADRs in early 2002 will include three operators already listed at level one — Uralsvyazinform, Kubanelektrosvyaz and Nizhnosvyazinform. This stage requires the companies to report under International Accounting Standards.

Svyazinvest denied Thursday reports that it was considering giving up control of the seven regional telecoms to attract strategic investment.

Mustcom — the offshore consortium of domestic and foreign investors that has a 25 percent plus one blocking stake in state-controlled Svyazinvest — has expressed interest in swapping for shares of the consolidated assets. George Soros and Vladimir Potanin both have significant stakes in Mustcom, which was formed in 1997 to buy the Svyazinvest stake for almost $1.9 billion.

Meetings next year of shareholders in regional operators will likely produce blueprints of the exact swap ratios for the cross-regional mergers.