Tele2 unites its Kazakh unit with Kazakhtelecom’s Altel
02 March 2016 | Alan Burkitt-Gray
Tele2 has combined its mobile operation in Kazakhstan with Altel, the mobile operation of Kazakhtelecom.
The deal, originally announced in November 2015, will have a market share of 23%, with more than six million subscribers.
Allison Kirkby, president and CEO of Tele2, said: “The process of integrating the businesses is well underway and the expected synergies will be beneficial for both our customers and shareholders.”
Tele2 said that the deal has been completed after the companies had received all relevant regulatory approvals.
When the deal was announced, Tele2 said that it had 4.4 million subscribers in Kazakhstan and that market accounted for 7% of group sales and 1% of core profit.
Tele2 will have operational and management control of the combined entity and own 49% of the venture’s equity while Kazakhtelecom will own 51%. Tele2 and Kazakhtelecom will hold 51% and 49% of the voting rights respectively.
Kirkby said that the joint venture “will create a more sustainable and significant player in the market”.