MTS Sells its Majority Stake in Uzbekistan's UMS
Published on: 9th Aug 2016
Note -- this news article is more than a year old.
Russia's MTS has sold its 50.01% stake in Uzbekistan's UMS to the national government.
"Due to a variety of business reasons and other circumstances, MTS decided to sell its stake in the joint venture UMS LLC," said MTS vice president, and director of the Foreign Subsidiaries business unit, Andrei Smelkov.
It is understood that the trigger for the sale was a USD600 million fine imposed on the company and an ongoing criminal case.
Due to the sale of its stake in UMS, MTS expects to record a write-off in respect of assets of approximately RUB 3 bln in Q3 2016. The precise amount of the write-off will be specified afterwards.
On September 23, 2014, MTS received 50.01% of the share capital of UMS at no cost. The remaining 49.99% of UMS was owned by the State Unitary Enterprise Centre of Radio Communication, Radio Broadcasting and Television of The Ministry of Development of Information Technologies and Communications of the Republic of Uzbekistan. The mobile communications network began commercial operations on December 1, 2014.