The Meeting of the Board of Directors of the OJSC FETEC (Dalsviaz) held in Moscow on February 27, 2004 took a resolution to terminate its share in the authorized capital of the PJSC Primtelefon by selling 50% of shares held by the OJSC FETEC (Dalsvyaz) to MTS Company (Mobile TeleSystems). Transaction amount is to be $31 ml.
The main reason is failure to have full control of PJSC Primtelefon business by the OJSC FETEC (Dalsvyaz). Such situation is caused by distribution of shares in the authorized capital in 50% to 50% ratio.
Thus it seems reasonable not to invest in asset total control of which is impossible but to sell it. Proceeds will be used for development of own mobile and other profitable businesses. The Board of Directorsĺ members were governed by such considerations in taking this resolution.