Deutsche Telecom plans to sell a quarter of MTS shares

The shares of OJSC Mobile Telesystems decreased at the auction on the New York Stock Exchange by 3.89%-to $ 148.1 after a report of the intention of Deutsche Telecom to sell a 25.1% share in the company.

The German newspaper Handelsblatt reported that the sale of MTS shares will become part of a strategic program that provides for the sale of all shares in companies where Deutsche Telecom will not be able to get a control package of shares. The German company, in addition, intends to focus on the markets of Europe and North America.

According to Interfax with reference to Bloomberg , during the auction, the decline reached almost 7%, which became a record drop in the year.

It is not clear whether it will reduce its share gradually or sell it with a single package, the possible terms of sale are unknown, notes The Financial Times . Deutsche Telecom considers investing in MTS rather "financial" than strategic investments. Previously, it has already reduced its share from 40% to 25.1%. The cost of this package, based on market quotes, is about 3.5 billion euros.

According to market participants, writes Bloomberg, Deutsche Telecom may not be able to find the buyer for the entire package, and then he will sell it in the market, which will inevitably lead to a decrease in shares.

Deutsche Telekom herself refused to give any comments about her plans for MTS.

MTS is the largest in the number of subscribers operator of mobile communications in Eastern Europe and the CIS countries. Together with his subsidiaries, he serves more than 27.8 million subscribers in Russia, Uzbekistan, Belarus and Ukraine.