Moscow, Russia – November 01, 2005 – Mobile TeleSystems OJSC (“MTS” - NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that it has acquired the remaining 49% stake in Barash Communications Technologies, Inc. (BCTI), a U.S. company that is the leading mobile phone operator in the Republic of Turkmenistan.
In line with its strategy of consolidating the Company’s ownership in its subsidiaries, MTS acquired the additional 49% stake in BCTI, incorporated in the United States, from the founders of the company for $18.52 million. MTS purchased the initial 51% controlling stake of BCTI in June 2005 for $28.05 million.
BCTI’s branch in Turkmenistan holds GSM-900/1800 and AMPS licenses for the entire territory of the country (population: 6.6 million1). Mobile penetration in Turkmenistan is less than 1% and fixed line penetration is estimated at around 6%2. The company provides services to approximately 60 thousand subscribers and is the leader of the two GSM providers operating in the country.
“We are pleased to consolidate BCTI at an attractive valuation and we are looking forward to developing a successful mobile business in Turkmenistan. We believe that the Turkmen mobile market offers great potential and that MTS possesses the necessary expertise to unlock it,” said Vassily Sidorov, MTS’ President and CEO, adding: “The consolidation of our ownership in BCTI provides for the company’s complete integration into MTS’ unified corporate standards, ensuring that customers in Turkmenistan receive our full range of first rate services.”
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1According to the National Institute of Government Statistics of Turkmenistan. |
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2According to the World Fact Book of the Central Intelligence Agency.
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