TeliaSonera signs to increase 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 percent 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 percent) and Kazakhtelecom (49 percent). Fintur Holdings B.V. is owned by
TeliaSonera (58.55 percent) and Turkcell (41.55 percent).


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,” said Tero
Kivisaari, president, TeliaSonera Eurasia.  


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 Kivisaari added.


TeliaSonera recently announced it issued
a Eurobond of EUR 500 million in a 10.5 year deal maturing in March 2022, under
its existing EUR 10 billion EMTN (Euro Medium Term Note) program. The Re-offer
yield was set at 4.134 percent p.a. equivalent to Euro Mid-swaps + 142 bp.


“We continue to use the Eurobond market for our
long-term corporate funding and we are happy to tap the market at such good
terms,” said Per-Arne Blomquist, executive vice president and CFO,


By Team
[email protected]