Russian MTS extends buyback deadline to June 18

MTS, Russia’s largest mobile operator, has prolonged the deadline for a proposed buyback for foreign shareholders by three weeks until June 18, the company announced on Monday.
The buyback offer, initiated last month, allows MTS to repurchase up to 4.2 per cent of its shares at a discounted price of approximately 70 per cent.

This move aims to enable Western investors to recover some funds stranded in Russia amid geopolitical tensions. The buyback mirrors a similar proposal by Magnit in 2023, which completed a discounted buyback worth about $736 million.

However, the Kremlin mandates a minimum 50 per cent discount on asset sales involving foreigners. MTS’ offer has already received approval from the Russian government, and the deadline for shareholders to accept the offer has been extended to June 18.

Non-resident shareholders, whose shares are held in special ‘type-C’ accounts, are eligible to participate, with the option to receive funds in any currency in bank accounts within Russia or abroad.

This buyback initiative represents a significant opportunity for non-resident shareholders to divest their holdings in Russian companies amidst the challenges posed by geopolitical tensions and economic sanctions.