MTS, the leading telecommunications provider in Russia, announced that it has sold its 50.01% stake in Universal Mobile Systems (UMS), Uzbekistan's telecoms operator. The stake is sold to Center of radio communication, radio broadcasting and television under the Ministry of Development of Information Technologies and Communications of Uzbekistan.
Arising from the deal, MTS expects to record a write-off in respect of assets of approximately RUB 3 bln in Q3 2016 in view of the company's operations, including depreciation of equipment and operating costs for electricity, repair of equipment and salaries.
"Due to a variety of business reasons and other circumstances, MTS decided to sell its stake in the joint venture UMS," said MTS vice president, and director of the Foreign Subsidiaries business unit, Andrei Smelkov.
On September 23, 2014, MTS received the 50.01% of the share capital of UMS at no cost. The remaining 49.99% of UMS was owned by the Center. The Operator began commercial operations on December 1, 2014.