Copying and distributing are prohibited without permission of the publisher
TeliaSonera to buy 49% of Kcell
23 December 2011
TeliaSonera now owns 61% of Kazakh operator but plans to sell nearly 25% in an IPO
Read more:
TeliaSonera
Kcell
Kazakhstan
Kazakhtelecom
Fintur
Swedish operator TeliaSonera has signed a deal with Kazakhtelecom to buy 49% stake in GSM Kazakhtelecom for $1.52 billion, subject to regulatory sanctions. GSM Kazakhtelecom operates under the brand Kcell. The deal is likely to be completed in the first quarter of 2012.
Tero Kivisaari, TeliaSonera Eurasia’s president, said: “This agreement is another step in the execution of our strategy of increasing ownership in core holdings. Through this transaction TeliaSonera increases its ownership in Kcell, a company where we already have management and operational control.”
TeliaSonera will also sell 25% of the shares minus one share in the mobile operator in an IPO, which is expected to be completed during 2012. TeliaSonera may also liable to have to make an extra payment to Kazakhtelecom depending on the share value development following the offering.
Fintur Holdings, which is 58.55% owned by TeliaSonera, holds 51% in GSM Kazakhstan and Kazakhtelecom holds 49%. TeliaSonera’s possession in Kcell will be 61.74%.
Kivisaari added: “Kcell is a clear market leader in Kazakhstan, the largest market in Central Asia, and has shown remarkable growth over the years. The fact that part of the company will be sold in an IPO will make it even more attractive.” GTB
Further reading from Global Telecoms Business:
TeliaSonera rolls out 3G in Azerbaijan 21 Nov 2011
TeliaSonera plans LTE expansion in Sweden 30 Sep 2011
TeliaSonera unveils common brand 13 May 2011
TeliaSonera rolls out 4G in Estonia 20 Dec 2010