MOSCOW, August 5, 2016 /PRNewswire/ --
PJSC MTS (NYSE: MBT, MOEX: MTSS), the leading
telecommunications provider in Russia, announced today that it
has sold its 50.01% stake in the telecommunications
operator Universal Mobile Systems (UMS) to the State Unitary
Enterprise Centre of Radio Communication, Radio Broadcasting and
Television of The Ministry of Development of Information
Technologies and Communications of the Republic of Uzbekistan.
(Logo:
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"Due to a variety of business reasons and other circumstances,
MTS decided to sell its stake in the joint venture UMS LLC," said
MTS vice president, and director of the Foreign Subsidiaries
business unit, Andrei Smelkov.
Due to the sale of its stake in UMS, MTS expects to record a
write-off in respect of assets of approximately RUB 3 bln in Q3 2016. The precise amount of the
write-off will be specified afterwards.
On September 23, 2014, MTS
received 50.01% of the share capital of UMS at no cost. The
remaining 49.99% of UMS was owned by the State Unitary Enterprise
Centre of Radio Communication, Radio Broadcasting and Television of
The Ministry of Development of Information Technologies and
Communications of the Republic of Uzbekistan[1]. The mobile
communications network began commercial operations on December 1, 2014.
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For further information, please contact in Moscow:
Joshua B. Tulgan
Director, Department of Corporate Finance and Investor
Relations
Mobile TeleSystems PJSC
Tel: +7 495 223 2025
E-mail: ir@mts.ru
Learn more about MTS. Visit the official blog of the Investor
Relations Department at http://www.mtsgsm.com/blog/
* * *
Mobile TeleSystems PJSC ("MTS" - NYSE:MBT; MOEX:MTSS) is the
leading telecommunications group in Russia, Central and Eastern Europe. We provide wireless Internet
access and fixed voice, broadband and pay-TV to over 100 million
customers who value high quality of service at a competitive price.
Our wireless and fixed-line networks deliver best-in-class speeds
and coverage throughout Russia,
Ukraine, Armenia, Turkmenistan, Uzbekistan and Belarus. To keep pace with evolving customer
demand, we continue to grow through innovative products,
investments in our market-leading retail platform, mobile payment
services, e-commerce and IT solutions. For more information, please
visit: http://www.mtsgsm.com.
* * *
Some of the information in this press release may contain
projections or other forward-looking statements regarding future
events or the future financial performance of MTS, as defined in
the safe harbor provisions of the U.S. Private Securities
Litigation Reform Act of 1995. You can identify forward looking
statements by terms such as "expect," "believe," "anticipate,"
"estimate," "intend," "will," "could," "may" or "might," and the
negative of such terms or other similar expressions. We wish to
caution you that these statements are only predictions and that
actual events or results may differ materially. We do not undertake
or intend to update these statements to reflect events and
circumstances occurring after the date hereof or to reflect the
occurrence of unanticipated events. We refer you to the documents
MTS files from time to time with the U.S. Securities and Exchange
Commission, specifically the Company's most recent Form 20-F. These
documents contain and identify important factors, including those
contained in the section captioned "Risk Factors" that could cause
the actual results to differ materially from those contained in our
projections or forward-looking statements, including, among others,
the severity and duration of current economic and financial
conditions, including volatility in interest and exchange rates,
commodity and equity prices and the value of financial assets; the
impact of Russian, U.S. and other foreign government programs to
restore liquidity and stimulate national and global economies, our
ability to maintain our current credit rating and the impact on our
funding costs and competitive position if we do not do so,
strategic actions, including acquisitions and dispositions and our
success in integrating acquired businesses, potential fluctuations
in quarterly results, our competitive environment, dependence on
new service development and tariff structures, rapid technological
and market change, acquisition strategy, risks associated with
telecommunications infrastructure, governmental regulation of the
telecommunications industries and other risks associated with
operating in Russia and the CIS,
volatility of stock price, financial risk management and future
growth subject to risks.
* * *
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[1] Subsequently renamed as The Ministry of
Development of Information Technologies and Communications of the
Republic of Uzbekistan
SOURCE Mobile TeleSystems (MTS)