Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or the “Company” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces the acquisition of Pilot LLC and TVKiK LLC, which provide fixed broadband and pay-TV services in the cities Kurchatov and Schigry in the Kursk Oblast, from private investors. The purchase price, including the net debt of both companies, amounts to 90.7 million rubles.
Pilot LLC has been active in the fixed broadband market in Kurchatov since 2000. TVKiK LLC has been providing pay-TV services in Kurchatov since 1991 and in Schigry since 2001. The operators’ FTTB (fiber-to-the-building) network covers 98% of households in Kurchatov and over 80% of households in Schigry.
TVKiK LLC’s market share in the pay-TV market in Kurchatov exceeds 95%, and its market share in Schigry is approximately 80%. Pilot LLC is the leading provider of fixed broadband in Kurchatov and boasts a market share of 65%.
Financial results of Pilot LLC and TVKiK LLC will be consolidated in the Company's financial statements beginning from October 30, 2012.
Overall, MTS Group offers fixed-line services in over 150 cities throughout Russia.
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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/