TNW Teleset Net

RNS Number:3814P
Teleset Networks PCL
05 March 2008



Press Announcement



FOR IMMEDIATE RELEASE                              5 March 2008





Teleset EGM to approve 20 million share issue at 25 pence, disapplication of
pre-emptive rights on a further 30 million shares, and conversion of share
capital to Euros


Teleset Networks ("Teleset" or "the Company"), a leading private fixed-line
telecom network operator in the Republic of Tatarstan, Russia, announces that, 
in accordance with its stated strategy, it is developing successfully through a
combination of organic growth and strategic acquisitions of complementary
telecom operators.


At a meeting held on 5 February 2008, the Board of Directors reviewed the
progress achieved so far in implementing its stated strategy and the Company's
future funding requirements.


During the first half of 2007, the Company successfully completed the
integration of TNPKO, its first acquisition which strengthened Teleset's
position in Kazan. In November 2007, it made its first strategic move outside
Kazan with the US$10.8 million acquisition of OOO Svyazinvest, a private
fixed-line telecom operator in Naberezhnye Chelny, the second largest city in
Tatarstan.


The Company is actively looking at acquiring other companies with a total
subscriber base in the region of 30-40 thousand lines. The Board of Directors
recognises that, in order to be able to fully capitalise on acquisition
opportunities in the Russian market, the Company has to have funds in place
before starting negotiations. These funds together with other funds the Company
has available will be used to finance possible acquisitions.


In view of the acquisition opportunities identified, the Board of Directors has
decided to seek approval from shareholders to raise new equity as soon as
possible and to provide the flexibility to raise further capital, as required,
in the future.


Following indications of support from shareholders, the Board of Directors has
decided to seek to raise �5 million (US$10 million) via an offer to
shareholders, on a pro-rata basis, of 20 million new shares at 25 pence each.


In addition, the Board of Directors also proposes that the pre-emption rights of
shareholders be disapplied for the issue and allotment for cash of a further 30
million new shares.


At the same time, following the entry of Cyprus into the Eurozone, it is now
necessary to convert the Company's share capital from Cyprus Pounds into Euros.


These proposals will be considered at an Extraordinary General Meeting to be
held on 26th March 2008. The Notice of EGM detailing the resolutions has been
sent to shareholders.


Philippos Vatiliotis, Non-executive Chairman, commented:


"Teleset has established a strong record of profitable growth and managing
acquisitions. The company is entering an exciting phase in its development and
is well placed to take advantage of strategic opportunities in its chosen
markets. We are well supported by our institutional investors and the Board is
unanimous in recommending the proposals to shareholders."



END



CONTACTS



Teleset Networks                                           +357 22 450 790
Yiannis Demetriou

Blue Oar Securities Plc - Nominated Adviser                +44 20 7448 4400
Shane Gallwey

Metropol (UK) Limited - Broker                             +44 20 7439 6880
Alexander Selegenev

Bankside Consultants - Financial PR adviser                +44 20 7367 8888
Simon Bloomfield, Steve Liebmann or Andy Harris


About Teleset Networks


Teleset is a leading private fixed-line telecom operator in the Republic of
Tatarstan, Russian Federation, where the business has been operating since 1996.


In Kazan, the capital of the Republic of Tatarstan, Teleset owns an all-digital
local network with current switching capacity of 130,000 lines. Its US$17
million acquisition of TNPKO in November 2006 improved its coverage of Kazan
where its market share is approximately 27 per cent for voice traffic and 29 per
cent for data traffic.


Management's strategy is to become Tatarstan's leading telecom operator and to
expand into other cities within the Russian Federation, both organically and
through carefully selected acquisitions. The US$10.8 million acquisition in
November 2007 of OOO Svyazinvest, the third largest fixed-line telecom operator
in Naberezhnie Chelny, was the first strategic move by Teleset outside Kazan.
Naberezhnie Chelny, where the Company has a market share of approximately 10 per
cent, is the second largest city after Kazan in the Republic of Tatarstan.


Another key objective is to generate incremental revenues from its network. To
this end, in August 2007 the company launched a new cable TV service in four
districts of Kazan, (Aviastroitelny, Kirovsky, Novo-Savinovsky and Privolzhsky),
with a total addressable market of approximately 250,000 flats. The Company
plans to roll out the service in the other three districts of Kazan.


Major long-term shareholders include funds managed by Templeton Asset Management
Ltd., by the Black Sea Trade and Development Bank, an international financial
institution, and by Deutsche Bank.






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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