MTS to complete UMC acquisition in April.

EUROPEMEDIA-(C)2003 Van Dusseldorp & Partners - http://www.vandusseldorp.com/

Russian mobile operator MTS is to complete its acquisition of Ukrainian Mobile Communications (UMC) in April.

"We hope we will manage to (complete the acquisition process) in the current quarter,"

MTS started the acquisition process late last year, signing agreements with UMC's current shareholders to acquire a 57.7 per cent stake of the Ukrainian mobile operator for E180m.

MTS will pay Deutsche Telekom and KPN E55.24m each for their 16.3 per cent stakes and Ukrtelecom, the national operator, E84.57m for its 25 per cent stake. The company also has an agreement with TDC for the purchase of its 16.3 per cent stake.

MTS also has an option agreement with Ukrtelecom to purchase its remaining 26 per cent stake, exercisable from 5 February 2003 to 5 November 2005, at a price of E87.98m

Thus, if all options are exercised, MTS will own a 100 per cent stake in UMC.

In January, MTS had decided to put the deal on hold after receiving information about the legal action of one of Ukrtelecom shareholders.((Distributed via M2 Communications Ltd - http://www.m2.com))