Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or the “Company” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that OJSC “MTS” has acquired 100% stake in OJSC “Teleradiokompania”TVT” (“TVT”) from a group of investors. TVT is a leading provider of cable TV and fixed broadband services in the republic of Tatarstan with presence in 15 cities. This acquisition allows MTS to strengthen its leadership position in Tatarstan and enter the market of pay-TV, broadband and fixed telephony services in the region.
The purchase price amounts to $162.9 million. MTS also assumes net debt in the amount of $17.1 million
TVT is the leading pay-TV provider in two of the Tatarstan largest cities - Kazan and Naberezhnye Chelny with market shares of 55% and 72% respectively. Total pay-TV subscriber base in the region exceeds 500,000 while its broadband network covers more than 600,000 households passed. TVT provides fixed broadband services in Kazan, Naberezhnye Chelny and Nizhnekamsk and has a 13%, 19.5% and 18.5% market shares in terms of subscribers respectively. TVT also offers fixed telephony services in Kazan and with the installed numbering capacity of 110,000 services 13% of total subscribers in the city.
"This acquisition is in line with the MTS strategy aimed at building the leading integrated telecommunications operator in Russia. We see great potential for growth of broadband internet usage in Tatarstan and will invest in further development and modernization of the region’s fixed-line networks. Acquisition of TVT enables MTS to enhance position and strengthen its brand in the promising Tatarstan market through the launch of convergent offerings and innovative products," commented Andrei Revkov. Director for “MTS Volga Region.”
TVT’s financial results will be consolidated in the Company's financial statements beginning from October 24, 2011.
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For further information, please contact in Moscow:
Joshua B. Tulgan
Director, Investor Relations
Acting Director, Corporate Finance
Department of Investor Relations
Mobile TeleSystems OJSC
Tel: +7 495 223 2025
Learn more about MTS. Visit the official blog of the Investor Relations Department at www.mtsgsm.com/blog/