OREANDA-NEWS. March 23, 2011. CenterTelecom OJSC reports that the trading in CenterTelecom securities including shares, ADRs and bonds, will cease as a result of its reorganization.

It is planned that on 25 March, 2011 CenterTelecom will submit the documents regarding the registration of information about discontinuation of its activities in connection with its accession to Rostelecom OJSC in the Unified State Register of Legal Entities (EGRUL). In accordance with the Federal Financial Markets Service (FFMS) requirements, such information should be published as it may have a material effect on a value of the securities of a joint stock company, and in compliance with stock exchanges' rules it may lead to suspension of the trading until completion of the reorganization.

A completion of the accession will take place on a day of registration of information about discontinuation of CenterTelecom's activities in the EGRUL. CenterTelecom common and preferred shares and its bonds will be converted into new Rostelecom common shares and bonds respectively. The conversion will be conducted simultaneously with registration of information about discontinuation of CenterTelecom's activities in connection with its accession to Rostelecom OJSC in the EGRUL; it is expected to take place on April 1, 2011.

In accordance with the stock exchange rules, a decision on cease of trading in securities which are to be canceled as a result of reorganization shall be made not later than on the business day following the day of publication of information about completion of reorganization by the issuer. Accordingly the trading in CenterTelecom securities in Russian and foreign stock exchanges is expected to be discontinued on the day following the publication.

It is expected that the beginning of trading in new issues of Rostelecom's common shares and bonds will begin in Russian stock exchanges after preparation and registration of reports on the results of securities issue by FFMS. In compliance with FFMS's rules the registration is to be conducted within 14 days. The trading in new Level 1 ADRs of Rostelecom in foreign stock exchanges will also begin after registration of the reports mentioned above. Trading in Rostelecom's existing common and preferred shares and depository receipts will not be suspended during all stages of reorganization.

A decision on formation of an integrated company on basis of Rostelecom by means of its merger with CenterTelecom OJSC, Sibirtelecom OJSC, Dalsvyaz OJSC, Uralsvyazinform OJSC, VolgaTelecom OJSC, NWT OJSC, UTK PJSC and Dagsvyazinform OJSC, was approved by the annual general meeting of shareholders of Rostelecom on 26 June, 2010. The shareholders of the merging companies also voted for reorganization at their general meetings held in summer 2010.