MTS Completes Sistema Purchase

Mobile TeleSystems announces that it has completed the acquisition of 100 percent of Sistema Telecom

December 28, 2010

1 Min Read

MOSCOW -- Mobile TeleSystems OJSC, the leading telecommunications provider in Russia and the CIS, announces that it has completed the acquisition of 100% of Sistema Telecom LLC, a subsidiary of JSFC Sistema.

Under the terms of the agreement, wholly-owned subsidiaries of MTS purchased a 100% stake in Sistema Telecom for RUB 11.59 billion ($379.01 million1 ) from Sistema and its wholly-owned subsidiary. In addition, MTS assumed debt considerations totaling RUB 1.80 billion ($58.93 million), which include the settlement of RUB 1.35 billion ($44.04 million) in debts between MTS subsidiaries and Sistema Telecom.

The transaction was completed upon the recommendation of the Special Committee of Independent Directors of MTS Board of Directors, approval by the MTS Board of Directors and additional approvals from Sistema's Extraordinary General Shareholder Meeting and the Federal Antimonopoly Service (FAS).

Sistema Telecom's key assets consist of: property rights in respect of the group of trademarks, including the distinctive "egg" trademarks of MTS, Comstar-UTS and MGTS2; certain promissory notes previously issued by MTS in the amount of RUB 2.00 billion ($65.50 million); and a 45% stake in TS-Retail, where MTS already holds a controlling 55% interest.

Mobile TeleSystems OJSC (MTS) (NYSE: MBT)

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