The parliament of Mongolia has approved foreign investment legislation that imposes restrictions on stakes foreign investors can take in telecommunications companies, as well as in other industries deemed strategic.
The law, which is reportedly expected…
The parliament of Mongolia has approved foreign investment legislation that imposes restrictions on stakes foreign investors can take in telecommunications companies, as well as in other industries deemed strategic.
The law, which is reportedly expected to come into effect within days, concerns private foreign investments of 49% or more in strategic industries if the deal value exceeds US$75m.
Acquisitions of stakes above the threshold will require permission by the Mongolian parliament.
According to Mongolian securities firm Frontier, state owned foreign investors will have to ask for parliamentary approval for buying stakes as low as 1%.
Mobile operators in Mongolia include MobiCom, which is, according to its website, owned by Mongolian NewCom and Japanes Sumitomo General Trading and KDDI Telecommunications.
Korean KT Telecom is an investor in Mongolia Telecom (MT). According to KT, MT is the leading operator in the country, and majority owned by the Mongolian state.
