Mobile TeleSystems May Acquire 25% of MTS-Bank for $162 Million

OAO Mobile TeleSystems (MBT), Russia’s largest mobile operator, made a non-binding offer of 5.09 billion rubles ($162 million) to buy 25 percent of MTS-Bank from its parent company AFK Sistema. (SSA)

MTS-Bank, developed on the base of Moscow Bank for Reconstruction and Development, Dalcombank and East-West United Bank, is seeking to expand in retail business, according to a statement today. Mobile Telesystems, or MTS, has about 4,200 retail outlets in Russia which sell handsets and subscriber contracts. They have also issued credit cards for mobile users since 2011.

Sistema, billionaire Vladimir Evtushenkov’s company that also controls MTS, would reduce its stake in MTS-Bank to 65 percent under the deal, according to a separate statement from the mobile operator.

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net

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