15 Feb 2024 13:12

Kazakhtelecom to complete sale of Mobile Telecom Service in 3-4 months

ASTANA. Feb 15 (Interfax) - Kazakhtelecom plans to complete the sale of Mobile Telecom Service in the next three to four months, Kazakhtelecom CEO Kuanyshbek Yesekeyev said.

"I think the deal will be closed in the next three to four months, when the value of the deal is quite clear," Yesekeyev told reporters in Astana on Thursday.

However, he declined to specify the expected value of the deal.

"I can't announce the value of the deal yet, as the negotiations are still going on. However, we have already signed an agreement and will soon start the valuation of the asset," Yesekeyev said.

Kazakhstan's Samruk-Kazyna and Kazakhtelecom, and Qatar's Power International holding WLL signed an agreement on cooperation on February 14 according to which Power International Holding plans to acquire Mobile Telecom Service, which was created through the merger of Kazakhstan-based mobile operators Tele2 and ALTEL and is now owned by Kazakhtelecom.

Discussions about the need for Kazakhtelecom to dispose one of its two telecom operators have been ongoing for a long time. Initially, Digital Development Minister Bagdat Musin said the process would be completed by the end of 2023. However, he later said the procedure would take a year and would be wrapped up during 2024.

A decision to privatize Mobile Telecom Service was reached on January 20, 2024 at a meeting of the State Commission on Economic Modernization due to "the need to stimulate economic growth and attract additional resources aimed at expanding the production base and modernizing production."

Kazakhtelecom is the leading communication operator in Kazakhstan. It owns 51% of Kcell and 100% of Mobile Telecom Service.

Kazakhtelecom consolidated 100% of Mobile Telecom Service LLP in 2019 after Sweden's Tele2 decided to leave the Kazakh market and sold it 49% of the mobile operator's shares.

The main shareholders of Kazakhtelecom, according to data from January 1, 2024 on the Kazakhstan Stock Exchange, are the National Wealth Fund Samruk-Kazyna with 71.32% and First Heartland Jusan Bank with 8.1%.