Teliasonera (TLSNY.PK, 0H6X.L) inked an agreement with Kazakhtelecom to acquire 49 percent of the shares in GSM Kazakhstan LLP, operating under the brand Kcell for a purchase price of $1.519 billion. The transaction may get finalized during the first quarter of 2012.
Further, TeliaSonera agreed to sell 25 percent of the shares minus one share in Kcell in an Initial Public Offering or IPO, which 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.
Currently, GSM Kazakhstan LLP is owned by Fintur Holdings and Kazakhtelecom, while Fintur Holdings B.V. is owned by TeliaSonera and Turkcell.
Tero Kivisaari, President, TeliaSonera Eurasia noted, "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."
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