MTS sells 50% shares in UMS in Uzbekistan

PJSC MTS (NYSE: MBT) (MOEX: MTSS), a telecommunications provider in Russia, has sold its 50.01 percent stake in the telecommunications operator Universal Mobile Systems (UMS) to the State Unitary Enterprise Centre of Radio Communication, Radio Broadcasting and Television of The Ministry of Development of Information Technologies and Communications of the Republic of Uzbekistan, the company said.

Due to the sale of its stake in UMS, MTS said it expects to record a write-off in respect of assets of approximately RUB3bn in the third quarter 2016.

On September 23, 2014, MTS received 50.01 percent of the share capital of UMS at no cost. The remaining 49.99 percent of UMS was owned by the State Unitary Enterprise Centre of Radio Communication, Radio Broadcasting and Television of The Ministry of Development of Information Technologies and Communications of the Republic of Uzbekistan. The mobile communications network began commercial operations on December 1, 2014.

Mobile TeleSystems PJSC is a telecommunications group in Russia, Central and Eastern Europe that provides wireless Internet access and fixed voice, broadband and pay-TV to over 100 million customers.