TeliaSonera prepares for mobile data growth in Kazakhstan

TeliaSonera has entered into a conditional agreement to acquire the WiMax operations of the Kazakh company Alem Communications. The acquisition includes a WiMax network in six major cities, and, in particular, valuable frequencies in the 2.5/2.6 GHz band, which are compatible for use with WiMax and other mobile data transmission technologies.

In addition, TeliaSonera has reached an in principle agreement with Visor Group, whereby both companies would make an indirect minority investment in KazTransCom. TeliaSonera would also have the option to subsequently increase its indirect ownership in KazTransCom (subject, for example, to local legislation relating to foreign ownership). KazTransCom is a company listed on the Kazakhstan Stock Exchange and owns, among other businesses, a nationwide fibre optic network in Kazakhstan. TeliaSonera’s subsidiary in Kazakhstan, Kcell, has also signed a five year lease agreement for backbone capacity with KazTransCom.

“I am very pleased that we have been able to reach agreement in relation to these important transactions. They will be crucial for Kcell’s continued leadership in the rapidly growing mobile data sector and reaffirm our strategic commitment to developing mobile technologies and services in Kazakhstan.The investment in, and agreement with, KazTransCom would also secure further backbone capacity for Kcell at competitive prices for the years to come, a very important factor for future competitiveness as data volumes continue to grow rapidly,” said Tero Kivisaari, President, Business Area Eurasia, TeliaSonera.

The total value of the transactions would be USD 205 million, of which the acquisition related to Alem Communications represents USD 170 million, and the minority investment and option rights related to KazTransCom would represent USD 35 million. The transactions are subject to, among other conditions, regulatory approvals.

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 7 a.m. CET on August 14, 2012.