Sigma Says Russian Court Upholds its Claim to 20% Stake in SMARTS

MOSCOW, Aug 24 (Prime-Tass) -- A Moscow-based arbitration court of appeals has upheld Sigma investment and consulting group?s claim to a 20% minus one share stake in Russian regional mobile operator SMARTS, Sigma said Thursday.

The court of appeals upheld the verdict of the St. Petersburg and Leningrad Region Arbitration Court delivered in May, rejecting SMARTS' appeal. According to the Moscow court's ruling, Sigma's right to buy the stake comes into force as of Thursday, the claimant said.

According to Sigma, Cyprus-based firm Marshall Telecom Investments, indirectly controlled by SMARTS' General Director Gennady Kiryushin, bought a 20% minus one share stake from minority shareholders in August 2005 for U.S. $44.1 million. SMARTS, which is registered as a closed joint stock company, failed to notify Sigma of minority stakes being offered for sale. Under Russian corporate law, a stake in a closed joint stock company can only be sold to an outsider if other shareholders refuse to buy it, Sigma said.

SMARTS, or Middle-Volga Interregional Association of Radio and Telecommunication Systems, operates a GSM 900/1800 standard network in 16 regions of Russia.

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Posted to the site on 24th August 2006