TeliaSonera signs Memorandum of Understanding to increase its ownership in Kcell in connection with a planned IPO
TeliaSonera and Kazakhtelecom have signed a binding Memorandum of Understanding (MoU) regarding Kazakhtelecom’s intention to conduct an IPO of GSM Kazakhstan LLP, operating under the brand Kcell, in accordance with the efforts of the Government of Kazakhstan to expand and further develop the Kazakhstani stock market. The contemplated final outcome of the transactions according to the MoU, is that Kazakhtelecom will sell its shares in an Initial Public Offering (IPO), apart from 24% plus one share that will be acquired by TeliaSonera (or by TeliaSonera’s subsidiary Fintur Holdings). The transactions will be completed at market value. Any sale to TeliaSonera and IPO of shares are subject to a number of conditions being fulfilled by both parties.
Presently, GSM Kazakhstan LLP is owned by Fintur Holdings (51%) and Kazakhtelecom (49%). Fintur Holdings B.V. is owned by TeliaSonera (58.55%) and Turkcell (41.45%).
“We are very pleased with the signing of this MoU, as it is a clear step forward in TeliaSonera’s strategy of increasing ownership in core holdings. Kcell operates in the largest Eurasian market, has taken a clear market leader position, and shown remarkable growth over the years. A sale by Kazakhtelecom of an additional stake in Kcell to us would increase our ownership in a company where we already have management and operational responsibility. We are looking forward to reaching another milestone in our Eurasia growth strategy,” said Tero Kivisaari, President, TeliaSonera Eurasia.
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 08.30 a.m. CET on 21 September 2011.
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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.