MTS will explore the possibility of delisting from the NYSE. Operator shares are falling in price

Mobile operator MTS will review its listing structure and assess whether "a listing in the United States, given the high cost of maintaining it, is in the best interests of shareholders." It is reported by RBC with reference to the message of the company. Shares of MTS on the Moscow Exchange on these news fell in price by more than 3%.

More. MTS announced that it will update the strategy of presence in the equity capital markets, and admitted that the Moscow Exchange could become the main platform for the company. The company's capital structure has not changed since the initial public offering in 2000, and during this time the market has changed, the company explained: for example, the position of the Moscow Exchange as a financial center has strengthened.

In 2000, MTS held an IPO. Since then, a little more than 50% of the shares have remained with AFK Sistema, more than 34% are traded on the NYSE, about 11% on the Moscow Exchange. At the close of trading on Thursday, the capitalization of the operator in New York was $ 7.5 billion, in Moscow - 507 billion rubles.

Context. Last year, consultants advised Sistema to delist, however, not a "subsidiary" company, but a holding company - Reuters reported this on Thursday, citing its sources. The founder of Sistema, Vladimir Yevtushenkov, confirmed this information, but the company said that the issue of delisting its shares is not currently being considered. The capitalization of Sistema now (91.8 billion rubles) is significantly inferior to the cost of MTS.

Read also “Business is dying because of sanctions”: bankers advise Russian companies to leave the stock exchange

Banks and advisors are warning Russian clients about the threat of new sanctions, and companies are increasingly considering buyback and delisting programs from international exchanges, sources told Reuters. Sistema, according to them, refused to leave the LSE only because it would have to spend more than 30 billion rubles on a buyout (despite the fact that the company's debt already exceeded 580 billion rubles).

Last year, two Republican congressmen asked to "promptly" check whether the head of Yevtushenkov met the criteria for inclusion in the sanctions lists.

What will happen next? MTS emphasizes that the final decision will be made later and that it is important for the company to remain public.

Last year, MegaFon left the LSE, explaining the decision by the fact that the company is changing its strategy, and publicity prevents it from conducting particularly risky transactions.

Anton Baev