Court Bans Ukrtelecom AGM

The Kyiv Economic Court banned Ukrtelecom (UTEL: HOLD) from reconvening its AGM yesterday. No information concerning the court’s ruling was disclosed. According to management, the AGM will be continued some time later this year. Alexander Paraschiy: This is the second time in the last two weeks the Kyiv Economic Court has banned Ukrtelecom from going forward with corporate activities. We believe the reason for the banning yesterday’s meeting is connected to issues on the agenda of the company’s AGM: Changes to the supervisory board (and probably UTEL’s top-management), changes to the new subsidiaries and amendments to the company’s charter. It looks like Ukrtelecom’s main shareholder (the government) has not yet formed a clear position on the company’s agenda, or the company’s current management or supervisory board representatives disagree with the government’s position.