Mobile Telecom-Service Tele2 Kazakhstan

Kazakhstan Tele2 It appeared in the Republic in 2010, completing the purchase of a local telecom operator.

History

2024

Revealed the sale price of the company - $1 billion

On June 18, 2024, details became known about the sale by Kazakhtelecom of Mobile Telecom-Service, which operates under the Tele2 and Altel brands. The value of the asset, which was acquired by the Qatari holding Power International Holding (PIH), amounted to approximately $1 billion.

According to the Minister of Digital Development, Innovation and Aerospace Industry of the Republic of Kazakhstan Zhaslan Madiev, the deal with PIH will ensure the inflow of new investments and increase competition in the communications market, as a new mobile operator comes to the private sector. It is said about plans to build additional base stations, including with support for the 5G standard.

𝓲

Unsplash

The amount of the transaction is about $1 billion. Specifically, there are plans to invest also in basic infrastructure. There are obligations to build base stations, establish 5G base stations. And we believe in general that this will strengthen competition, and competition, as you know, leads to an increase in quality, "Madiev quotes the resource Tengrinews.kz a statement.

In addition, the head of the Ministry of Digital Development of Kazakhstan noted that the acquisition of the Mobile Telecom-Service operator is part of PIH's long-term strategy to enter the new regional market. The completion of the transaction on the transfer of the asset to the Qatari holding is scheduled for 2024.

Putting a billion dollars into buying a company, I think it's big enough money to donate it and then bring [the company] back to the state. I believe this is part of a long-term strategy to enter our region. Kazakhstan is a technology hub in the region. Therefore, the arrival of a new investor in the region precisely through Kazakhstan, I think this is a big positive sign for all of us, "Madiev notes.[1]

Power International Holding bought Mobile Telecom-Service

On February 14, 2024, the Kazakh investment holding Samruk-Kazyna announced that the telecommunications operator Kazakhtelecom had entered into an agreement to sell one of its mobile assets, Mobile Telecom-Service LLP (operating under the Tele2 and Altel brands). The buyer is Qatari holding Power International Holding (PIH).

The decision to sell Mobile Telecom-Service LLP was made on January 20, 2024 at a meeting of the State Commission for the Modernization of the Economy of the Republic of Kazakhstan. The corresponding trilateral agreement was signed in Qatar by Kazakhtelecom, Samruk-Kazyna (is the majority shareholder of Kazakhtelecom JSC) and Power International Holding.

𝓲

Pexels

We have only recently entered into negotiations and, of course, today's agreement only fixes our intention to deal with Power International Holding and in the future it will be necessary to discuss and consolidate all the conditions and procedure for the sale and purchase, so it is too early to talk about specific figures, the amount of the transaction, etc., - said the chairman of the board of Kazakhtelecom Kuanyshbek Esekeev.

Yesekeev calls Power International Holding "an authoritative and stable company that is very well known in Kazakhstan." It is a Qatari conglomerate covering various sectors of the economy. The company employs approximately 65 thousand employees, about 1000 different projects have been implemented around the world. In particular, in October 2022, within the framework of the official visit of the Emir of Qatar to Kazakhstan, the holding signed a memorandum on the construction of a large international medical complex in Astana worth approximately $300 million.

We are glad to sign this agreement on the acquisition of a mobile operator in Kazakhstan, and of course, the expansion of PIH's business in a country where the investment climate is very favorable and the business environment is developed, "says Mohammed Mutaz Al-Hayat, Chairman of Power International Holding.[2]

Notes