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EBRD sells 50 per cent of its stake in Russia’s Golden Telecom
Bank to retain equity to promote expansion; sale should boost share liquidity
The EBRD has sold half of its shares in Golden Telecom Inc. (GTI), the Russian
telecommunications and broadband services provider, reducing its stake from
8.4 per cent to 4.2 per cent. The Bank sold 1,501,782 shares to institutional
investors via Merrill Lynch.
The EBRD acquired its holding in Golden Telecom at the time of the company’s
IPO in September 1999. The Bank’s participation was aimed at supporting the
company’s IPO and growth plans. The Bank’s sale underlines the company’s
success over the past seven years and reflects strong investor demand for the
stock. The sale should also increase liquidity in the company’s shares.
EBRD First Vice President Varel Freeman said the EBRD’s initial investment had
helped transform Golden Telecom into a successful company which is now
well-positioned to benefit from strong telecom and broadband sector growth.
The Bank will retain 50 per cent of its shares in GTI as a sign of its
commitment to the further success of the company, he added.
Jean-Pierre Vandromme, Chief Executive Officer of Golden Telecom, Inc.
commented: “We have had a fruitful partnership with the EBRD since we went
public in 1999, and look forward to continuing this relationship. Increasing
our free float will address a concern that is frequently expressed by market
participants and analysts. We hope that this solution will allow us to broaden
our investor base and the attractiveness of our company.”
GTI is a telecommunications and broadband company providing services to
businesses and other customers and telecommunications operators across Russia
and other countries in the CIS. GTI offers a range of services, including
local exchange and access services, international and domestic long distance
services, and Internet access. The company is one of the largest telecoms
operators in Russia and Ukraine.
Golden Telecom was incorporated in Delaware on June 10, 1999 and is listed on
NASDAQ under the symbol "GLDN". Current shareholders of Golden Telecom
represent a mixture of financial and strategic investors, both Russian and
international.
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