One of the largest domestic telecommunications operators, MTS, intends to buy 4.2% of its own shares worth almost 8 billion rubles (about 84 thousand shares at 95 rubles each) from foreign investors of the company. This purchase price is approximately 70% lower than the market price: MTS shares on the Moscow Stock Exchange closed on Friday at 313 rubles.
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According to the company’s statement, which Forbes has at its disposal, the buyer of the securities will be Stream Digital LLC (an affiliate of MTS). And both non-residents with securities registered in type “C” securities accounts and residents “under the control of foreigners” will be able to provide shares for repurchase.
MTS emphasized that this step will give foreign shareholders the opportunity to “partially or totally dispose of the shares they own,” restoring “the rights to which they were limited.”
Foreigners will receive the buyback funds in their accounts in rubles, euros, dollars, yuan or UAE dirhams. All these details were previously approved by the government commission for control of foreign investments in the Russian Federation.
Previously, MTS carried out a share buyback in 2021 – about 2.27% of the securities worth about 15 billion rubles.
Author:
Ekaterina Alipova
Source: RB
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