Shares of Rostelecom rose in June by almost 20%
Photo: D. Abramov / Vedomosti
Since the close of trading on May 29, Rostelecom shares have risen in price by 21.5% to 97.1 rubles. per share. At the same time, preferred shares for the same period increased in price by 14%, to 65.84 rubles. The growth in the value of shares (ordinary and preferred) is proceeding rather quickly, only this Tuesday the shares went up by 6 and 5%, respectively, Vedomosti writes . The turnover for June 9 and 10 for ordinary shares exceeded 5 times the average for May; for preferred shares, the excess was even greater - 10-26 times.
Kira Kiryukhina, representative of Rostelecom, believes that the growth of quotations is a quite expected reaction of the market, as a response to fundamental changes taking place in the company. First of all, these changes concern the adoption of a progressive dividend policy. Now experts predict the growth of dividend yield on Rostelecom ordinary shares to the level of the Big Three companies. Kiryukhina also recalled that the company plans to complete the process of modernizing its broadband Internet access network by switching to optics. This, in turn, allows you to monetize your leadership position in the digital services market, as well as generate more cash flow. According to Kiryukhina, there is interest from the funds towards the company.
Yevgeny Yurchenko, the former general director of the parent company Rostelecom, Svyazinvest, which is one of the minority shareholders of Rostelecom itself, believes that the rapid growth in quotations and turnover is evidence of a deliberate buying up of securities of the operator. A similar opinion was expressed by Otkritie FC analyst Alexander Vengranovich. The analyst believes that among buyers there is a major interest, the motives of which are not entirely clear. The opinion is somewhat confirmed by Bloomberg data, according to which, from May 29 to June 9, BCS conducted transactions with 25.4 million ordinary shares of Rostelecom (this is about 1%). Such a volume is about half of the total turnover of trading in the company's shares on the Moscow Exchange.
According to Vedomosti sources, Rostelecom is now exploring the possibility of purchasing STS Media. At the same time, the company already knows what it will pay in the course of the transaction if the negotiations are successfully completed. Own shares owned by Mobitel, a subsidiary of Rostelecom, may be used for the transaction. Now this company owns 10.72% of Rostelecom ordinary shares, and soon plans to acquire another 2.64%.