VLADIVOSTOK, March 1, 2005 - Open Joint Stock Company “Far East Telecommunications Company” (US ADR: FEEOY), the leader on the telecommunications market of the Russian Far East, today announces that on February, 25, 2005 it sold 6,45 percent shareholding in OJSC “Dal Telecom International” (DTI) to CJSC “VimpelCom”.
DTI is a mobile company with GSM and DAMPS standards serves Khabarovsk, Kamchatka and Amur Regions. The buyer of minority stake is OJSC “VimpelCom” holding 93,5 percent of DTI shareowner capital. Minority stake was sold by FETEC for 7.975 million USD.
As Corporate Governance Officer Alexey Skrylnikov said, Far East Telecommunications Company implements maximizing profitability strategy of using capital expenditures. FETEC is planning to sell all nonspecialized assets which profitability is lower than total company’s assets. Cash from this selling will be used to finance company’s projects with higher rate of profitability.
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