29 October 2003 23:43
MGTS plans IPO worth $200 mln-$300 mln in 2004
MOSCOW. Oct 29 (Interfax) - Moscow City Telephone Network (MGTS) is planning an IPO worth $200 million-$300 million
by the end of 2004.
Mikhail Smirnov, the general director, told reporters the proceeds would be used to modernize the Russian
capital's telephone network, at an estimated cost of $1 billion over five years. Without the IPO, the project would
take ten years to finish upgrading the network from analog to digital, Smirnov said.
MGTS shareholders have so far been unable to agree on the plans for issuing the securities, but talks are on-going
and "we hope for a positive outcome," Smirnov said. Svyazinvest, the national telecoms holding company which
owns 28% of MGTS, opposes the IPO. It holds a blocking stake in the company, which is owned by AFK Sistema.
If the company does decide in favor of the IPO, the IPO will not happen before November next year. The issue has not
yet been put before the board of directors, Smirnov said. [RU ASIA EUROPE EEU EMRG TEL IPO MRG STX] pr <>
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