10:18 GMT +3 hours23 November 2014
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Russia's MTS to buy Sistema Telecom for $380 mln - paper

Business
(updated 18:26 28.10.2014)
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Mobile TeleSystems (MTS), a leading telecommunications provider in Russia and the CIS, will buy Sistema Telecom, the telecom's division of financial group Sistema, which owns all of the mobile operator's egg logotype brands, for $380 million, Kommersant business daily quoted two sources familiar with the situation as saying on Monday.

Mobile TeleSystems (MTS), a leading telecommunications provider in Russia and the CIS, will buy Sistema Telecom, the telecom's division of financial group Sistema, which owns all of the mobile operator's egg logotype brands, for $380 million, Kommersant business daily quoted two sources familiar with the situation as saying on Monday.

The board of directors of Sistema will consider on Monday the issue of selling Sistema Telecom to MTS, 52.8% of which belongs to Sistema, the sources were quoted as saying.

The deal will allow MTS, whose logotype is a white egg on a red background, to consolidate 100% of TS Retail, which owns certain mobile stores under the MTS brand and 45% of which belongs to Sistema Telecom.

Since Sistema Telecom also has about $60 million in debts, the deal may amount to $440 million.

Sistema and MTS declined to comment on the deal.

 

MOSCOW, November 15 (RIA Novosti)