16th Nov 2016 11:00
PJSC ROSTELECOM / Miscellaneous - Low PriorityRostelecom's corporate venture capital fund 'CommIT Capital' invests in'RDP.RU' 16-Nov-2016 / 13:00 CET/CESTDissemination of a Regulatory Announcement, transmitted by EquityStory.RS,LLC - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- ROSTELECOM'S CORPORATE VENTURE CAPITAL FUND 'COMMIT CAPITAL'INVESTS IN 'RDP.RU' Moscow, Russia - November 16, 2016 - Rostelecom PJSC (MOEX: RTKM, RTKMP;OTCQX: ROSYY), Russia's national telecommunications operator, todayannounces that its corporate venture capital fund 'CommIT Capital' hasinvested approximately RUB 130 million in 'RDP.RU' group, a leading Russiandeveloper of network functions, receiving 15% of authorized capital. 'RDP.RU' is one of the leading Russian developer of network solutions fortelecoms operators and corporate clients, successfully competing with theworld leading vendors. The company's portfolio includes the CG-NAT, URL-filtering service, BRAS gateway, DPI, as well as Russia's first universalhigh-performance IP / MPLS router EcoRouter. Rostelecom actively uses thecompany's EcoNAT product (CG-NAT) in its networks. As a result of this deal, Rostelecom will have the right to be involved inshaping the technology policy and strategy for 'RDP.RU' to create higherquality, advanced and marketable products. Alexey Basov, Chairman of the Board and the Investment Committee of 'CommITCapital', commented: 'Rostelecom is always interested in cooperation withpromising companies whose competence successfully complement our business.'RDP.RU' is a team of industry experts, creating world-classtelecommunications solutions. By investing in 'RDP.RU', we are makingstrategic steps towards our future technological leadership andfacilitating faster implementation and higher quality of offered services.' * * * Rostelecom Venture Capital Fund CommIT Capital is a wholly-owned Corporate Venture Capital Fund ofRostelecom. CommIT Capital invests in and develops companies that offerunique competencies that complement and offer synergies with Rostelecom'soperations. The decision to establish Rostelecom Corporate Venture Fund wasapproved by the Board of Directors in May 2015. In September 2015,Rostelecom completed the first tranche of financing for the fund for atotal amount of RUB 1.5 billion. * * * Rostelecom (www.rostelecom.ru) is one of the largest nationaltelecommunications operators in Russia and Europe. The Company operates inall segments of the telecommunications market and covers millions ofhouseholds in Russia. Rostelecom is an undisputable leader of the broadband and pay-TV markets inRussia with over 12.2 million fixed-line broadband subscribers and over 9.2million pay-TV subscribers, over 4.0 million of which are subscribed toRostelecom's IPTV services. In the nine months of 2016 the Group generated RUB 217.0 billion ofrevenue, RUB 72.4 billion of OIBDA (33.4% of revenue) and RUB 8.7 billionof net income. The Group is a market leader in providing telecommunications services togovernment bodies and corporates of all levels. Rostelecom is an important innovator that provides solutions in the fieldof E-Government, cloud computing, healthcare, education, security andhousing & utility services. The Group's stable financial position confirmed by its credit ratings.Rostelecom was assigned 'BBB-' and 'BB+' international credit ratings byFitch Ratings and Standard&Poor's respectively. * * * Certain statements in this press release are forward-looking statementswithin the meaning of the U.S. federal securities laws and intended to becovered by the safe harbours created thereby. Those forward-looking statements include, but are not limited to: - Assessment of Rostelecom's PJSC (the Company) future operating and financial results as well as forecasts of the present value of future cash flows and related factors; - The Company's plans to take ownership stakes in other organisations; - the Company's anticipated capital expenditures and plans to construct and modernize its network; - the Company's expectations as to the growth in demand for its services, plans relating to the expansion of the range of its services and their pricing; - the Company's plans with respect to improving its corporate governance practices; - the Company's expectations as to its position in the telecommunications market and forecasts on the development of the market segments within which the Company operates; - economic outlook and industry trends; - the Company's expectations as to the regulation of the Russian telecommunications industry and assessment of impact of regulatory initiatives on the Company's activity; - other statements regarding matters that are not historical facts. Such forward-looking statements are subject to risks, uncertainties andother factors, which could cause actual results to differ materially fromthose expressed or implied by these forward-looking statements. Theserisks, uncertainties and other factors include: - risks relating to changes in political, economic and social conditions in Russia as well as changes in global economic conditions; - risks relating to Russian legislation, regulation and taxation, including laws, regulations, decrees and decisions governing the Russian telecommunications industry, securities industry as well as currency and exchange controls relating to Russian entities and their official interpretation by regulatory bodies; - risks relating to the Company, including the achievement of the anticipated results, levels of profitability and growth, ability to create and meet demand for the Company's services including their promotions, and the ability of the Company to remain competitive in a liberalized telecommunications market; - technological risks associated with the functioning and development of the telecommunications infrastructure, technological innovations as well as the convergence of technologies; - other risks and uncertainties. For a more detailed discussion of these and other factors, see the Company's Annual Report and the Company's other public filings. Many of these factors are beyond the Company's ability to control orpredict. Given these and other uncertainties, readers are cautioned not toplace undue reliance on any of the forward-looking statements containedherein or otherwise. The Company does not undertake any obligation torelease publicly any revisions to these forward-looking statements (whichare made as of the date hereof) to reflect events or circumstances upon theannual report publication or to reflect the occurrence of unanticipatedevents, except as may be required under applicable laws. Note: This announcement contains inside information in accordance withArticle 7 of EU Regulation 596/2014 of November 10, 2014Full name and position making the announcement - Ekaterina Ustinova, IRDirector. --------------------------------------------------------------------------- The EquityStory.RS, LLC Distribution Services include RegulatoryAnnouncements, Financial/Corporate News and Press Releases.Archive at www.dgap.de/ukreg --------------------------------------------------------------------------- Language: English Company: PJSC ROSTELECOM 30 Goncharnaya st. 115172 Moscow Russia Phone: +7 (499) 999-82-83 Fax: +7 (499) 999-82-22 E-mail: [email protected] Internet: www.rostelecom.ru ISIN: US7785291078 Listed: Foreign Exchange(s) Moscow Category Code: MSCL TIDM: RKMD Sequence Number: 3604 Time of Receipt: 16-Nov-2016 / 12:02 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------------- 521383 16-Nov-2016UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.
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