KPN Sells Ukraine Mobile Stake

Sells stake in Ukrainian Mobile Communications (UMC) to Russian operator MTS for $55 million

November 5, 2002

1 Min Read

The Hague –- Today KPN from the Netherlands and Mobile Telesystems (MTS), mobile operator in Russia, have signed a binding agreement regarding the sale of KPN's 16.3% participation in Ukrainian Mobile Communications (UMC) for a consideration of US$ 55 million in cash. UMC is the leading mobile operator in the Ukraine.As part of the agreement MTS has also extended a guarantee to KPN for the repayment of outstanding shareholder loans of approximately US$ 18.6 million.The transaction is amongst others subject to MTS shareholders approval and Ukrainian anti monopoly approval. KPN anticipates that the financial benefits of this transaction can be accounted for in Q1 2003.The sale of KPN’s participation is part of an overall shareholding restructuring of UMC where also TDC Mobile International, Deutsche Telekom and UkrTelecom are involved.KPN has been a founding partner in UMC that started operations in 1992 together with TDC Mobile International (16.3%), Deutsche Telekom (16.3%) and UkrTelecom (51%). At the end of Third quarter 2002 UMC reported revenues, ebitda and net income of US$ 211.4, US$ 109.9 and US$ 44.5 million respectively. UMC currently has 1.5 million subscribers.KPN Mobile

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