Bloomberg News

Sistema Will Probably Put on Hold Initial Share Sales in Units

March 15, 2007

Russian billionaire Vladimir Yevtushenkov's AFK Sistema holding company, which controls eastern Europe's largest mobile-phone operator, may postpone any plans to sell shares in its units, brokerage Troika Dialog said.

``The pipeline of IPOs is over for the moment,'' Moscow- based brokerage Troika Dialog wrote in a note to investors today after a meeting with Sistema management.

Sistema, which in February raised $402 million by selling shares in its technology arm OAO Sitronics, had previously said it would sell shares in other units, including Sistema Mass Media. Sistema had earlier sold its own shares, as well as shares in OAO Mobile TeleSystems, OAO Comstar United Telesystems, and also in its developer unit Sistema-Hals.

Victor Kurilo, head of Sistema investor relations could not immediately comment when contacted by phone in Moscow today.

Sistema has also indefinitely postponed its earlier plan to split the company stock, according to Troika.

Sistema which also holds assets in oil, retail, aviation, insurance and banking sectors, will continue to increase its non-telecommunications assets, Troika said, citing Sistema management.

To contact the reporter on this story: Lyubov Pronina in Moscow at;

To contact the editor responsible for this story: Lars Klemming at

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