MTS MTS buys majority stake in Bank

Of OJSC "Mobile TeleSystems" announced an acquisition of 25.095% of the outstanding shares of OJSC "MTS-Bank" in accordance with the terms of the October 2012 indicative offer from MTS Bank and majority shareholder - AFK "System".

Under the agreement, MTS Group acquires additional shares of MTS Bank, equivalent to 25.095% of its share capital, for an amount of $ 5.09 billion. As a result of buying MTS Group will become the second-largest shareholder with a share of MTS Bank 26.85%. Will remain the largest shareholder AFK "System", the share of direct ownership which declined to 65.3% from 87.1%.

MTS has also entered into a five-year agreement with the Bank of MTS on the joint development of credit product "MTS Money." According to the signed contract, the operator will receive 70% of the annual profits of the project, the Bank's share of the profits from MTS "MTS Money" is 30%. Profit distribution companies will be proportionate contribution to the project.