Russian mobile operator MTS has been ordered by a London court to buy a controlling stake in Tarino Ltd, a holding company in Kyrgyzstan.
MTS announced on Monday that an international arbitration tribunal at the London Court of International Arbitration…
Russian mobile operator MTS has been ordered by a London court to buy a controlling stake in Tarino Ltd, a holding company in Kyrgyzstan.
MTS announced on Monday that an international arbitration tribunal at the London Court of International Arbitration (LCIA) had ordered MTS to buy the 49% stake in Tarino that it does not own already.
Proceedings started in 2007, with an action by Nomihold Securities, the holder of this 49% stake.
The LCIA ruling requires MTS to honour a Nomihold option to sell the stake to MTS for US$170m. MTS must now pay this amount, plus interest. It also must pay Nomihold US$5.88m in dividends and to compensate it for related costs.
LCIA would not confirm the ruling to TelecomFinance, citing confidentiality issues.
MTS has held a 51% stake in Tarino since 2005, when Tarino was thought to be the owner of Bitel, a Kyrgyz mobile phone operator.
In its statement, MTS said that it had written off costs of US$150m for the acquisition of Bitel and a liability of US$170m was recorded (with an associated charge for non-operating expenses) to account for a potential liability related to the remaining 49% stake in Tarino.
MTS said that it is reviewing the ruling and considering its legal options.
