Qatari holding to pay Kazakhstan $1.1 bln for Tele2 and Altel

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Qatari holding to pay Kazakhstan $1.1 bln for Tele2 and Altel - ministry

ASTANA. June 18 (Interfax) - Qatar's Power International Holding will pay $1.1 billion for Kazakhstan's Mobile Telecom-Service LLP, the owner of Altel and Tele2 operators, the Kazakh Digital Development, Innovation and Aerospace Industry Ministry said.

"The arrival of a new Qatari investor is a significant development. It brings new investments, expands the investor base, and increases competition in the market as a new mobile operator enters the private sector. The transaction amount is nearly $1 billion," Digital Development Zhaslan Madiyev Minister told reporters.

The ministry's press service later clarified the amount would be $1.1 billion.

The minister said the new operator was expected to invest significantly in the sector's development. "There are specific plans to invest in basic infrastructure and build 5G stations. These investments will come not only from this mobile operator but also from others. At least $1 billion will be invested in the sector over the next five years," Madiyev said.

Kazakhtelecom, its main shareholder Samruk-Kazyna and Power International Holding entered into a cooperation agreement for this transaction on February 14.

The sale of one of Kazakhtelecom's two telecom operators, the other being Kcell, has been under discussion for some time. The former digital development minister, Bagdat Musin, said the process would be completed by the end of 2023 but later acknowledged it would extend into 2024.

A draft government decree published in late January indicated that Kazakhtelecom would sell Mobile Telecom-Service LLP (Tele2 and ALTEL) in 2024 to stimulate economic growth and attract additional resources for expanding and modernizing production.

Kazakhtelecom dominates the local telecommunications market, owning 51% of Kcell and 100% of Mobile Telecom Service LLP (MTS, Tele2/ALTEL). The main shareholders of Kazakhtelecom, as of January 1, 2024, are the state fund Samruk-Kazyna (71.32%) and JSC First Heartland Jusan Bank (8.1%).