The Mongolian Cabinet yesterday (25 October) furthered its plans to purchase an additional 40% stake in Telecom Mongolia (Mongolia Telecom Company) from KT Corp of South Korea, the Montsame news agency reports. The sale plan, agreed on a preliminary basis in July, involves the Korean firm offloading its entire 40% interest for USD2.55 million to the government, which already owns 54.67% of the telco. KT acquired its Telecom Mongolia stake in 1995 for USD4.5 million.

The Cabinet assigned the Finance Minister and heads of corresponding agencies to include USD2.55 million for purchasing 10,348,111 shares from KT Corp in the 2018 budget, whilst negotiations on payment terms will be held in accordance with the two parties’ memorandum of mutual understanding. The Cabinet also authorised that, post-purchase, ‘necessary measures’ will be taken to increase efficiency, enhance management, introduce advanced technologies and co-ordinate policy at Telecom Mongolia.

Published Date:2017-10-27