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No plans to make new valuation of government's stake in mobile phone network MTS, official says

 

There are no plans to carry out a new valuation of the government's 51-percent in stake mobile phone network Mobile TeleSystems (MTS), Syarhey Pyatkow, first deputy head of the State Property Committee, said during a promotional event in Minsk on November 2.

The state-owned Real Estate and Valuation Institute estimated the value of the stake at $1 billion as of June 1, 2010, Mr. Pyatkow said.

Companies in Turkey, Kazakhstan and other countries are expressing an interest in the stake, he said.

"Everything is at the stage of talks at present," Mr. Pyatkow said. Talks continue with Russia's Mobile TeleSystems, which owns the other 49 percent in MTS, but the Russian company is not yet satisfied with the price, he said.

The date of a new bidding contest will be set after the Seventh Belarus Investment Forum, which will take place in Minsk on November 15 and 16, Mr. Pyatkow said.

A special event will be held during the Forum to advertise the MTS stake, he said.

As many as 45 companies had been invited to the promotional event on Friday. Thirty-five companies attended it, including two potential buyers, Turkey's Turkcell and US-based Xerox.

A similar event was held in 2011, with representatives of companies in Russia, Europe, Asia and the Middle East in attendance.

The government failed to auction off its stake in MTS at the end of last year. The auction was cancelled because the bidders had reportedly offered too little for the stake. The date of a new auction has not yet been set.

Alyaksandr Lukashenka announced in March 2011 that he was ready to sell the stake in MTS to Russia's Mobile TeleSystems, which owns the other 49 percent, for $1 billion. "We don't mind, but they should put $1 billion on the table," he said. "A valuation has been made. If they want, they are welcome, if they don't, we'll put it up for auction."

The government has repeatedly stated since then that it will not settle for less than $1 billion.

MTS is said to be the largest mobile phone network in Belarus. //BelaPAN