Leading Eastern European mobile carrier MTS to acquire 16.3 percent stake from Deutsche Telekom for US Dollar 55 million Deutsche Telekom has signed contracts today in Kiev, finalizing the sale of its 16.3% interest in mobile operator Ukrainian Mobile Communications UMC to OJSC Mobile Telesystems MTS, the leading mobile carrier in Eastern Europe. The sale is subject to several conditions, such as the approval of both the MTS shareholders- meeting and the respective authorities in Ukraine. The proceeds in the amount of USD 55 million are part of Deutsche Telekom's debt reduction program.
With over 1.5 million customers at end of the third quarter 2002, UMC is one of the leading mobile carriers in Ukraine and operates networks also in the GSM 900 and GSM 1800 standards. Deutsche Telekom has held a stake in UMC since 1992.
Likewise, KPN, the Dutch carrier, is to sell its 16.3 % stake in UMC. Ukrainian carrier Ukrtelecom is to sell 25 % of its stake to MTS. In addition, MTS agreed with Ukretelecom and Danish TDC on options to acquire the remaining 42.3 %.
MTS, with more than 5.5 million subscribers, is the largest mobile carrier in Eastern Europe. Deutsche Telekom holds a 40.1 stake in MTS through T-Mobile International AG. With MTS, Deutsche Telekom will maintain its commitment to the Ukrainian telecommunications market.