MTS raises Comstar stake above 70% via share offer

30 Sep 2010

Russian cellular group Mobile TeleSystems (MTS) has announced the acquisition of an additional 36,256,945 ordinary shares in its majority-owned subsidiary Comstar UTS, or 8.68% of the fixed/broadband operator’s share capital. The acquisition was made via MTS’ Voluntary Tender Offer (VTO) to Comstar shareholders that closed on 21 September 2010, having been more than three-times oversubscribed. On 13 July 2010 Comstar received the VTO from MTS to acquire up to 37,614,678 Comstar ordinary shares that MTS and its affiliates do not already own for RUB220.0 per Comstar share. The maximum number of ordinary shares to be purchased in the VTO represents up to 9.0% of Comstar’s issued share capital, and includes shares underlying Comstar GDRs. Before the share offer, MTS said it owned 61.97% of Comstar, and as it stands the VTO will raise its stake to 70.65%. Final confirmation of the VTO results will be published on 7 October 2010.

Russia, Comstar United TeleSystems (Comstar UTS), Mobile TeleSystems (MTS)