Moscow, Russian Federation – December 30, 2005 – Mobile TeleSystems OJSC (“MTS” — NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that it has acquired the remaining 46.1% share of ReCom, a mobile phone operator in the Central part of Russia.
In line with the Company’s strategy of consolidating ownership in its subsidiaries, MTS has purchased an additional 46.1% stake in ReCom from local private firms for $110 million. Previously MTS owned 53.9% of ReCom; as a result of this transaction, MTS’ ownership in the company increases to 100%.
ReCom is a GSM—900/1800 mobile phone operator in six regions of Russia1 with a total population of 8.6 million. The company’s subscriber base currently totals 2.7 million. For the first nine months of 2005, the company’s revenues amounted to $92.9 million, operating income totalled $29.5 million2, and net income was $11.8 million. The company’s net debt as of September 30, 2005, amounted to $4.9 million.
According to AC&M—Consulting.
Amortization and depreciation amounted to $15.1 million for the first nine months of 2005.