TeliaSonera and Kazakhtelecom have signed a binding Memorandum of Understanding (MoU) regarding Kazakhtelecom’s intention to conduct an IPO of GSM Kazakhstan LLP, a company that operates under the brand Kcell.
The contemplated final outcome of the transactions according to the MoU, is that Kazakhtelecom will sell its shares in an Initial Public Offering (IPO), apart from 24% plus one share that will be acquired by TeliaSonera (or by TeliaSonera’s subsidiary Fintur Holdings). The transactions will be completed at market value. Any sale to TeliaSonera and IPO of shares are subject to a number of conditions being fulfilled by both parties.
Presently, GSM Kazakhstan LLP is owned by Fintur Holdings (51%) and Kazakhtelecom (49%). Fintur Holdings B.V. is owned by TeliaSonera (58.55%) and Turkcell (41.55%).
“We are very pleased with the signing of this MoU, as it is a clear step forward in TeliaSonera’s strategy of increasing ownership in core holdings. Kcell operates in the largest Eurasian market, has taken a clear market leader position, and shown remarkable growth over the years. A sale by Kazakhtelecom of an additional stake in Kcell to us would increase our ownership in a company where we already have management and operational responsibility. We are looking forward to reaching another milestone in our Eurasia growth strategy,” said Tero Kivisaari, President, TeliaSonera Eurasia.