RDIF and Deutsche Bank Invest in Rostelecom

RDIF and Deutsche Bank Invest inRDIF and Deutsche Bank Invest in Rostelecom PR Newswire MOSCOW, October 11, 2013 The Russian Direct Investment Fund (RDIF) and Deutsche Bank, one of the leading international banks, made a joint investment in Russia's largest telecommunications company, Rostelecom. The two parties will invest a total of 7.674 billion roubles on a parity basis, which will be used to further develop and strengthen the company's market position. The transaction has received the necessary approval from Rostelecom, as well as the governing bodies of RDIF and Deutsche Bank. As a result of the deal, the two investors will purchase 72,187,366 Rostelecom ordinary shares from its subsidiary company MOBITEL. The structure of the deal also contains agreements relating to call and put options, according to which Rostelecom is entitled a portion of the profits from an increase in value of shares. As part of the same terms investors will receive protection against a decrease in the price of the shares. The struck agreements do not assume physical settlement. Kirill Dmitriev, CEO of the Russian Direct Investment Fund, said: "Sustained growth in the Russian economy means demand among consumers and businesses for reliable and ultra-fast broadband will continue to increase. It is therefore the right time to invest in the telecommunications sector.