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MTS controlling stock is offered for auction

Author: Mikhail Doroshevich


Belarusian government is putting Belarusian branch of MTS' controlling packet of shares for an auction.

The State Property Committee of Belarus made a decision to put 51% of local cellphone provider MTS' stock, which currently belong to a state-owned company Beltelecom. The auction will be carried out on the first of December, starting price being USD 1 billion. Claims are being accepted until November 15th, participants will have to transfer a down payment of USD 50 millions until November 28th.

For the auction's result to take effect, there must be at least one participant offering a price that is 5$ higher than a starting price.

Belarusian MTS was created by the Russian company MTS in 2001. However, Russian company received the share of 49%. In 2005, Belarusian government appointed Vladislav Karpovich to be the general director of MTS, pressing back Andrey Rymiantsev, a citizen of Russia. MTS provides services to 4,7 million of Belarussians, it's gains being USD 452 million last year.

This spring Alexander Lukashenko offered MTS to buy control share of Belarusian branch, they were interested in consolidation of Belarusian branch, but for a reasonable price. In case of auction, they promised to sell their share as well.

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