Kazakhtelecom to sell stake in small GSM firm

ALMATY, June 29 (Reuters) - Kazakh state-controlled fixed line operator Kazakhtelecom KZTK.KZ plans to sell its stake in small GSM provider Mobile Telecom Service, it said on Monday.

It said the decision to sell the stake was made "in line with the strategy and programme of asset restructuring ... aimed at strengthening the core business and optimising the use of resources."

Kazakhtelecom owns a 51 percent stake in Mobile Telecom Service which has 920,000 subscribers, it said in a statement. The company has hired RBS Corporate Finance Limited to advise it on the stake sale.

The country's two main GSM operators, GSM Kazakhstan and Kar-Tel, a subsidiary of Russia's Vimpelcom (VIP.N), have 7.5 million and 6 million subscribers, respectively.

Kazakhtelecom said it would accept bids until July 17. The company did not say how much it plans to raise from the sale. (Writing by Olzhas Auyezov)