Scandinavian telco giant TeliaSonera is buying the rest of GSM Kazakhastan LLP that it doesn't already at least partially own – 49 percent of the company – for $1.52 billion (U.S.).
GSM Kazakhstan LLP, which operates under the Kcell brand, is a fixed-line monopoly in the Central Asian nation. TeliaSonera expects the deal to close during the first quarter of 2012.
The other half of Kcell is co-owned by TeliaSonera and Turkcell under the name Fintur Holdings, a joint venture between the two companies. Once the deal is done, TeliaSonera will officially own almost two-thirds of Kcell, with Turkcell owning the rest.
Look for an initial public offering next year. TeliaSonera has further agreed, subject to certain conditions, to sell one quarter of the shares in Kcell in an IPO. That IPO is expected to be completed during 2012. Depending on the share-price development after the IPO, TeliaSonera may have to make an additional payment to Kazakhtelecom.
“This agreement is another step in the execution of our strategy of increasing ownership in core holdings. Through this transaction TeliaSonera increases its ownership in Kcell, a company where we already have management and operational control. 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.
