Source: Russia’s MTS may sell stake in Uzbek operator in August

TASHKENT, Aug 4 (PRIME) -- Russian mobile operator MTS plans to sell its 50.01% stake in Uzbek operator Universal Mobile Systems (UMS) until the end of August, a source familiar with the matter told PRIME Thursday.

“The decision of the sides has been generally reached, and MTS may drop the founding member status very soon – until the end of August,” the source said but declined to elaborate.

Several market sources told PRIME that the asset may be transferred to mobile operator Uzmobile, part of the country’s state telecom operator Uztelecom. Uzbekistan’s government owns the remaining 49.99% in UMS.

Representatives of UMS and Uzbek regulatory authorities could not be reached for comment.

In June, Kommersant business daily reported that MTS’ interest in UMS could be sold for a token price. The sale could be one of the conditions to settle an anticorruption investigation led by the U.S. Department of Justice against MTS, which is suspected of bribing local firms, affiliated with a daughter of Uzbek President Islam Karimov, to enter the market, Kommersant said.

The U.S. addressed in 2015 five European countries with a request to arrest assets worth U.S. $1 billion under the corruption investigation on the Uzbek telecom market. In addition to MTS, the case involved Amsterdam-based VimpelCom Ltd., the sole owner of Russia’s VimpelCom, and Sweden’s TeliaSonera.

VimpelCom Ltd. admitted guilt and could pay $795 million, but the amount is not final.

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