Deutsche Telekom sells another 10 percent stake in the Russian mobile communications operator Mobile Telesystems (MTS).
T-Mobile International's co-shareholder of MTS, AFK Sistema JCSC (Sistema), yesterday exercised a call option granted in March to purchase approximately 10 percent of the MTS shares. The transaction will be closed within 30 days in accordance with the terms of the contractual agreement.
Deutsche Telekom already sold a 5 percent share in MTS two days ago as part of a block trade. The total revenue from the two transactions amounts to approximately EUR 0.5 billion.
As announced in a press release on March 12, 2003, the stake, which originally amounted to approximately 40 percent, will be reduced to 25.1 percent when the two transactions have been completed.
Revenue from this transaction will be used exclusively to reduce Deutsche Telekom's debt.
THIS PRESS RELEASE IS NOT AN OFFER FOR SALE OF SECURITIES IN THE UNITED STATES OR ELSEWHERE. THE SECURITIES MAY NOT BE SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF THE 1933, AS AMENDED. ANY PUBLIC OFFERING OF THE SECURITIES IN THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM MTS OR THE SELLING SHAREHOLDER AND THAT WILL CONTAIN DETAILED INFORMATION ABOUT MTS AND ITS MANAGEMENT, AS WELL AS FINANCIAL STATEMENTS.
This press release is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order (all such persons together being referred to as "relevant persons"). The securities are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. Stabilisation/FSA