Russian mobile phone operator MTS quits Uzbekistan
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
A logo of MTS mobile phone operator is seen on a building in central Moscow, Russia, March 10, 2016. REUTERS/Maxim Shemetov
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
MOSCOW (Reuters) - Russia's biggest mobile phone operator MTS has sold its 50 percent stake in Uzbekistan telecommunications operator Universal Mobile Systems (UMS) to its joint venture partner, it said on Friday.
MTS has been under scrutiny from the U.S. Department of Justice and the Securities and Exchange Commission as part of a broader investigation into telecom firms' operations in Uzbekistan.
"Due to a variety of business reasons and other circumstances, MTS decided to sell its stake in the joint venture UMS LLC," Andrei Smelkov, MTS vice president, said in a statement.
The company said in a separate emailed comment that its decision was not prompted by the U.S. investigation or by any business difficulties related to the Uzbek government.
It declined to disclose the price of the sale but said UMS had repaid all its debt obligations to MTS.
Russia's Interfax news agency first reported the deal on Thursday, and said it would be done at a "a symbolic price", citing a source in the Uzbek state communications committee.
MTS sold its UMS stake to the State Unitary Enterprise Centre of Radio Communication, which is part of Uzbekistan's Information Technologies Ministry, and already owns the other 50 percent of UMS.
Due to the stake sale, MTS expects to write off about 3 billion rubles ($46 million) of assets in the third quarter, it said.
Its statement was published after the Moscow stock market close. MTS' American Depositary Receipts (ADRs) were up 1.2 percent in New York by 1813 GMT.
($1 = 65.6455 rubles)
(Reporting by Anastasia Teterevleva; writing by Polina Devitt; editing by Susan Fenton)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Herbalife (HLF) Provides Q4, FY17 Guidance in Memorandum for $1.325B Credit Facility; Lowers FY17 Sales Guidance
- Trump says call with Israel's Netanyahu was 'very nice'
- Takeda Commences Cash Tender Offer for Shares of ARIAD (ARIA)
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!