MTS Finds its Eldorado

Russian mobile network operator, Mobile TeleSystems (MTS) has acquired the mobile phone retail chains, Eldorado Centr and Eldorado Communications Store from Tenteco Limited (Cyprus) and Kilcherex Holdings Limited (Cyprus).

MTS has acquired a 100% stake in the Eldorado mobile phone retail chain for US$22.85 million of which US$5 million will be paid after 12 months should the retail chain satisfy certain performance criteria.

Eldorado Centr and Eldorado Communications Store, constituting Eldorado mobile phone retail chain, operate 383 stores in 153 cities in Russia offering handsets and other electronic goods, as well as tariffs and contracts of mobile operators. These companies are independent from Eldorado, the largest electronic appliances retail chain in Russia.

"MTS is continuing to optimize distribution channels in order to maintain high growth rates in its core markets. The development of our own monobrand retail network is the central element of our distribution strategy. Adding the Eldorado mobile phone retail chain to our existing retail network will allow us to serve our customers more effectively and carry through on our promise of a unique customer experience," noted Mr. Mikhail Gerchuk, Chief Commercial Officer, MTS.

Eldorado mobile phone retail chain will be controlled by RTK CJSC, a company wholly owned by MTS and charged with managing MTS' retail network. Financial results of acquired companies will be consolidated in the Company's financial statements beginning from March 31, 2009.

Posted to the site on 1st April 2009