ROSTELECOM PJSC (RKMD)
Rostelecom completes the deal to acquire DataLine
Moscow, Russia - January 13, 2020 - Rostelecom PJSC (MOEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia's largest digital communication services provider, today announces that its subsidiary Rostelecom Datacenters has completed the deal to acquire a 100% share of DataLine, the second largest datacentre provider in Russia. The Board of directors approved the deal on 20 November 2019.
Mikhail Oseevskiy, President of Rostelecom, commented: "The acquisition of DataLine strengthens Rostelecom's competitive position, making a significant contribution to its leadership in the growing market of cloud solutions and large-scale infrastructure and product ecosystems, which is currently growing at 2-digit growth rates. The acquisition will support Rostelecom's efforts to expand the range and increase flexibility of services through its growing portfolio."
Yury Samoilov, Director General of DataLine, commented: "DataLine's acquisition by Rostelecom provides a major growth opportunity to improve our service through a significantly wider range of products and solutions and better geographical accessibility. The deal will strengthen both companies' competitive positions and generate higher standards of service quality and enlarged geographical outreach. DataLine is not expecting any personnel changes."
Further information is available at https://www.company.rt.ru/en/ir/news_calendar/.
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PJSC Rostelecom is the largest digital service provider, operating in all segments of the telecommunications market in Russia, it serves millions of households, the state and private enterprises across the country.
Rostelecom is Russia's undisputed market leader, providing high-speed Internet access to over 13.1 million users and pay-TV services to more than 10.3 million clients, over 5.5 million of which are subscribed to Rostelecom's IPTV services on a national level.
In the nine months of 2019, the Group generated RUB 242.6 billion of revenues, RUB 81.4 billion of OIBDA (33.6% of revenue) and RUB 16.4 billion of net income.
The Group is the leading provider of telecommunications services to government bodies and corporates of all levels.
Rostelecom is a key strategic innovator that provides solutions in the following fields: E-Government, cybersecurity, data-centers and cloud computing, biometry, healthcare, education and housing & utility services.
The Group's stable financial position is confirmed by its credit ratings. Rostelecom has been assigned 'BBB-' and 'BB+' international credit ratings by Fitch Ratings and Standard&Poor's respectively, and AA(RU) by ACRA.
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Certain statements in this press release are forward-looking statements within the meaning of the U.S. federal securities laws and intended to be covered by the safe harbours created thereby.
Those forward-looking statements include, but are not limited to:
Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include:
Many of these factors are beyond the Company's ability to control or predict. Given these and other uncertainties, readers are cautioned not to place undue reliance on any of the forward-looking statements contained herein or otherwise. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements (which are made as of the date hereof) to reflect events or circumstances upon the annual report publication or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.
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