Moscow, Russian Federation – December 21, 2005 – Mobile TeleSystems OJSC (“MTS” — NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that it has acquired an additional 6.47% share of Sibintertelecom, a mobile phone operator in the Siberian part of Russia.
In line with the Company’s strategy of consolidating ownership in its subsidiaries, MTS has purchased an additional 6.47% stake in Sibintertelecom (6.3% from Sibirtelecom OJSC and 0.17% from a private investor). The amount paid for the stake totalled $2.8 million. In November 2004, MTS acquired a 100% ownership in US-based MCT Sibi Corp., which owned 93.53% of Sibintertelecom, for $37.3 million. As a result of the recent transaction, MTS’ ownership in Sibintertelecom increases to 100%.
Sibintertelecom is a GSM—900/1800 mobile phone operator in two regions of Russia with mobile penetration at around 33%1 and a total population of 1.16 million (1.08 million in the Chita region and 72 thousand in the Aginsk-Buryatsk Autonomous District). The company’s subscriber base was 372.1 thousand as of November 30, 2005.
1According to AC&M-Consulting.