TeliaSonera to buy remaining shares in GSM Kazakhstan

22 December 2011 |

TeliaSonera has signed an agreement to acquire the remaining 49% stake in operator GSM Kazakhstan, which operates under the Kcell brand, in a transaction worth $1.519 billion.

GSM Kazakhstan is 51% owned by Fintur Holdings, a company under 58.55% TeliaSonera control, and 41.45% owned by Turkcell. TeliaSonera already possesses management and operational control of GSM Kazakhstan.

The terms of a further agreement, subject to certain conditions, dictate that TeliaSonera must sell 25% of the shares minus one share in Kcell in an initial public offering (IPO), expected to be completed during 2012.

Once both terms of the agreement have been completed, TeliaSonera will have 61.74% effective ownership in Kcell.

“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,” said Tero Kivisaari, president, TeliaSonera Eurasia.

The transaction is expected to be finalised during the first quarter of 2012, subject to regulatory approval.