PRESS: Russia's Sigma Gets Right to Another 25% in SMARTS

MOSCOW, Aug 29 (Prime-Tass) -- Russian investment company Sigma has obtained the right to claim another 25% stake in Russian regional mobile operator SMARTS, Kommersant business daily reported Tuesday.

Sigma obtained the right after SMARTS' General Director and key shareholder Gennady Kiryushin took a US$58 million loan guaranteed by a 25% stake in the operator in 2005, the daily said. Kiryushin took out the loan from Vneshtorgbank, while Sigma re-bought the right of claim to the loan later.

On August 7, the deadline for Kiryushin to repay the loan expired, a spokesperson with SMARTS said. The general director did not redeem the loan, the daily reported.

Sigma controls a 0.125% stake in SMARTS and has been claiming its rights to a 20% stake. Sigma's claims were upheld by a court on August 24.

SMARTS' representatives, in turn, said earlier that Sigma purchased the 0.125% stake in the operator illegally and that Sigma's activity should be considered as a corporate raid against the operator aimed at decreasing SMARTS' value. SMARTS' shareholders have been looking to sell a stake in the operator since mid-2005.

SMARTS' key shareholders are Kiryushin, who controls with his relatives directly and indirectly about 80%, and SMARTS' Chairman Boris Skvortsov with about 15%.

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 29th August 2006