Uzbek authorities have transferred the assets of MTS’ local unit Uzdunrobita (MTS Uzbekistan) to state-owned Uzbektelecom.
A spokesperson for Russian telco MTS confirmed Uzbektelecom now has custody of the assets for safekeeping, but not the right to…
Uzbek authorities have transferred the assets of MTS’ local unit Uzdunrobita (MTS Uzbekistan) to state-owned Uzbektelecom.
A spokesperson for Russian telco MTS confirmed Uzbektelecom now has custody of the assets for safekeeping, but not the right to make use of them. No timeframe has been disclosed.
MTS, controlled by Russian conglomerate Sistema, has been embroiled in a long dispute with the Uzbek authorities over Uzdunrobita. In August 2012, the country revoked the mobile operator’s licence in connection with a disagreement over tax evasion, which led to the jailing of company managers.
MTS has said Uzdunrobita was forced to file for voluntary bankruptcy in January after local courts ordered it to pay about US$600m in fines.
In April, an Uzbek commercial court declared Uzdunrobita bankrupt and begun liquidation procedures. Local authorities held two auctions in July to try to sell the company’s assets but received no bids.
MTS noted in August that the authorities had asked creditors to buy Uzdunrobita’s assets. If this did not work out, the assets could be transferred to authorities.
The Russian operator has repeatedly contended that the authorities’ actions are illegal.
Uzdunrobita claimed to have 9.5 million subscribers at the end of Q1 2012, making it at the time the country’s largest mobile operator with a 38% market share. Uzbektelecom also provides mobile services under the Uzmobile brand.
