TeliaSonera completes transactions for mobile data growth in Kazakhstan
The formal conditions to complete the acquisition of the WiMax operations of the Kazakh Company Alem Communications, from its owner Midas Telecom, and an indirect minority investment in KazTransCom, through the purchase of shares from Alatau LLP, have been met. The intention to carry out the transactions was announced on August 14, and they are expected to complete in early January 2013.
With the acquisition of a WiMax network in six cities TeliaSonera also secures valuable frequencies in the 2.5/2.6 GHz band, which are important in order to cater to an anticipated increased demand for mobile data. The frequencies are compatible for use with mobile data transmission technologies such as 4G.
Following completion of the transactions, Kcell, TeliaSonera’s subsidiary in Kazakhstan, will have full access to these businesses on commercial terms. It already deploys the backbone capacity of KazTransCom's national fibre optic network, and it has started to prepare for the deployment of the frequencies of Alem Communications. TeliaSonera intends to transfer to Kcell the WiMax operations, including frequencies, and its investment in KazTransCom, subject to satisfaction of certain conditions as disclosed in the Kcell IPO prospectus.
“I am very pleased that we have been able to finalize these transactions which are crucial for Kcell’s continued leadership in mobile data. This reaffirms our strategic commitment to develop mobile technologies and services in Kazakhstan. The transactions will secure frequencies, as well as further backbone capacity at competitive prices, for Kcell in the years to come. This is very important for Kcell’s future competitiveness, as data volumes continue to grow rapidly,” said Tero Kivisaari, President, Mobility Services and Business Area Eurasia, TeliaSonera.
The total value of the transactions is USD 205 million (subject to any post completion accounting adjustments), of which the Wimax acquisition from Midas Telecom represents USD 170 million, and the minority investment and option rights related to KazTransCom represents USD 35 million. Midas Telecom LLP is owned by Ms. Aigul Nuriyeva and Alatau LLP is owned by Ms. Raushan Sagdiyeva.
Note: These transactions are described in more detail on pages 57–59 of the Kcell IPO prospectus dated December 12th 2012 which is available on www.kcell.kz/en
TeliaSonera AB discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instrument Trading Act. The information was submitted for publication at 5.30 p.m. CET on December 28, 2012.
Statements made in the press release relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of TeliaSonera.
TeliaSonera provides network access and telecommunication services in the Nordic and Baltic countries, the emerging markets of Eurasia, including Russia and Turkey, and in Spain. TeliaSonera helps people and companies communicate in an easy, efficient and environmentally friendly way. Our ambition is to be number one or two in all our markets, providing the best customer experience, high quality networks and cost efficient operations. TeliaSonera is also the leading European wholesale provider with a wholly-owned international carrier network. In 2011, net sales amounted to SEK 104 billion, EBITDA to SEK 36.9 billion and earnings per share to SEK 4.20. The TeliaSonera share is listed on NASDAQ OMX Stockholm and NASDAQ OMX Helsinki. Read more at www.teliasonera.com.