Russia’s MTS sells 50.01% in Uzbek unit for $1 in August 2016

MOSCOW, Mar 28 (PRIME) -- Russian mobile operator MTS sold a 50.01% stake in Uzbek operator Universal Mobile Systems (UMS) for U.S. $1 in August 2016 to a second shareholder, state-owned local connection center, according to MTS’ documents, seen by PRIME late on Monday.

MTS wrote off 2.726 billion rubles in its report for July–September 2016 as a non-cash loss from withdrawal from Uzbekistan. The amount was calculated on the basis of MTS’ share in UMS and the company’s operating activities, including amortization of equipment.

The Russian operator also said that the sale of the stake had nothing to do with the ongoing investigation by the U.S. Department of Justice regarding a number of companies, including MTS, on suspicions of bribing their entrance on the local market through firms allegedly affiliated with Gulnara Karimova, a daughter of the former Soviet republic’s late President Islam Karimov.

As of the end of 2015, UMS had 1.095 million subscribers and a market share of 5.4%.

(57.0233 rubles – U.S. $1)

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