London’s court has arrested four activists of the “SMARTS” in the claim of MTS

Moscow. December 24. London’s high court ruled to arrest four of the company’s telecommunications group, the “SMARTS” in the claim of LLC “Volga Telecom”, “daughter” of the JSC “Mobile TeleSystems” (MTS), announced the newspaper “Vedomosti” with reference to the materials of the court.

We are talking about assets of “SMARTS” in Penza, Yoshkar-Ola, Saransk and Ulyanovsk. According to newspaper sources, at the end of 2014, MTS and founder of the “SMARTS” Gennady Kiryushin has entered into an agreement to sell the operator 100% of the shares of all four companies until 30 November 2015. By this time the deal did not materialize, PJSC “MTS” estimated loss “Volga Telecom” from relapse purchase at $35 million.

The representative of MTS Dmitry Solodovnikov confirmed the claim, adding that he was aware about the arrest of four companies “SMARTS”. According to him, PJSC “MTS” also filed a lawsuit in the London court of international arbitration (it has, in agreement with Kirushina, disputes should be resolved on the transaction).

Kiryushin told “Vedomosti” that the deal fell through because the ATS does not pay the cost of the assets prior to the indicated deadline of 30 September 2015. Last week he said that four of the company “SMARTS” there are buyers, however, MTS is not among them – negotiations with the operator will not result in a deal. The founder of the “SMARTS” planned that assets in Penza, Yoshkar-Ola, Saransk and Ulyanovsk will be sold next year.

“SMARTS” is actively selling its assets and, according to AC&M Consulting, as of the end of the third quarter only served a 72.5 thousand subscribers compared with 1.07 million the previous quarter. In December last year, MTS has acquired the assets of the group in the Penza and Ivanovo regions and the Republic of Bashkortostan for 3.1 billion (including net debt). At the end of June 2015 PJSC VimpelCom (MOEX: VIMP) bought “SMARTS-Elista”, in November “SMARTS-Astrakhan” and “SMARTS-Saratov”, without revealing the amount of transactions. PJSC MegaFon (MOEX: MFON) in August acquired the assets of “SMARTS” in Astrakhan, Cheboksary, Samara and Yaroslavl for the 5.75 billion.

Operators interested in technology-neutral radio frequencies in the 1800 MHz band owned “daughter” of “SMARTS”. This resource of the “big three” is developing LTE network. Or sale of assets “SMARTS” owned subsidiaries and branches in 13 regions of the Volga, southern and Central Federal districts.