You're reading: Ukrainian investors make Wellcom buyout offer

The feud over control of Ukrainian Radio Systems continued this week, with representatives of the company's Ukrainian shareholders claiming that they have offered to buy out Korea's Daewoo and promising to invest up to $120 million in the company after the dispute is settled.

URS operates a small mobile telephone operator under the Wellcom trade name. Last month, representatives of the Ukrainian shareholders removed Korean URS officers loyal to Daewoo after the Koreans’ Ukrainian work permits were revoked.
Daewoo officials called the removal an illegal attempt to take control of the firm.
During an Aug. 1 news conference, Optima board chairman Motti Korf said that URS’ Ukrainian shareholders – Ukrfundinvest and Interinvest – have offered to purchase Daewoo’s stake. Korf would not disclose the terms of the offer, but said his clients expected Daewoo would respond to the offer within two weeks.
Optima is a consultant to URS’ Ukrainian shareholders.
URS’ Ukrainian shareholders have also given Daewoo their plan to restructure the company’s debts to the bankrupt South Korean corporation.
Daewoo officials say they won’t simply walk away from their estimated $70 million investment in URS.
Yuri Kurmaz, formerly URS’ deputy general director is now the company’s acting president. A shareholder meeting has been scheduled for Sept. 9 to elect new directors to the company’s board.
Kurmaz said that a business plan prepared by Ukrfundinvest and Interinvest foresees expanding the company’s GSM-900 network coverage to 14 regions and major highways.
Wellcom launched its GSM 900 mobile-telephone network in October 1998. It provides communications services in Kyiv, with about 32,000 subscribers.
URS shareholders include Ukrfundinvest, with a 31 percent interest, Interinvest with 20 percent and Daewoo, which holds a 49 percent stake.