MTS leader among mobile and digital services
PJSC Mobile TeleSystems (Next PJSC MTS) is one of the leaders of the provision of mobile services, including the Internet and other services available on mobile phones. MTS is also a leading supplier of digital services, such as homemade television and the Internet. More than 80 million users are connected to MTS for mobile communications services in Russia, Armenia and Belarus, an additional 9 million people are connected to digital wired Internet services and related digital communications services.The main beneficiary of MTS shares is the company AFC system, in 2000 and 2003. The company's shares entered the listing of the New York Stock Exchange and the Moscow Exchange.
The Board of Directors decided to reverse the shares of MTS
On March 18, at the general meeting of the Board of Directors of PJSC MTS, it was decided to produce the so-called buyback, i.e. Buy back the stocks that are in free circulation on the stock exchange back to the basket. The amount you want to throw on these purposes is limited to 15 billion rubles in 2021.
Information on the start and volumes of MTS redemption will be provided additionally during the year, since the redemption plan must be completed until the end of 2021.
Why is the reverse ransom of shares and how will this affect their course?Usually, the buyback scheme (reverse ransom) is being made when there is a free cash flow or in the case when there is an understanding that the growth of the company's financial indicators will exceed all expectations. Reverse redemption The action is done so that in the future most of the profits remained in the company based on the volume of shares, thereby the same Board of Directors will be able to discharge award more, well, or MTS will be able to develop more actively other directions.
The course of stocks at reverse ransom will grow, since additional finances will provoke demand for shares by buyers.
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