Moscow, Russian Federation – December 16, 2005 – Mobile TeleSystems OJSC (“MTS” — NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that it has acquired the remaining 47.5% of Telesot-Alania, a GSM mobile phone operator in the Republic of North Ossetia.
In line with the Company’s strategy of consolidating ownership in its subsidiaries, MTS has acquired the remaining 47.5% stake in Telesot-Alania. The initial 52.5% controlling stake was purchased in December 2004. The total amount paid for 100% ownership of Telesot-Alania was $38.8 million.
Telesot-Alania is a GSM-900/1800 mobile phone operator in the Republic of North Ossetia (total population: 710 thousand). As of November 30, 2005, the company’s subscriber base reached 98.4 thousand subscribers. Mobile penetration in the region reached approximately 63% at the end of October 2005.
For the first nine months of 2005, the company’s revenues amounted to $6.10 million1 and its operating income totalled $1.24 million2. The company’s debt is insignificant.
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Based on unaudited financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). |
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Amortization and depreciation amounted to $2.11 million for the first nine months of 2005. |
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