Tele2 Group and rival Kazakhtelecom have decided to merge their mobile businesses in Kazakhstan by floating a 51:49 joint venture.
The new business will have more than 5.6 million subscribers and a market share of around 22 percent. Altel is the fourth largest national mobile business fully owned by Kazakhtelecom and operator of the country’s only current 4G network.
“This transaction will enable our customers to gain access to Altel’s 4G network and to benefit from its accelerated rollout across Kazakhstan,” said Allison Kirkby, president and CEO of Tele2 Group.
Tele2 will retain management control. As part of the transaction, Tele2 will purchase Asianet’s existing 49 percent stake in Tele2 Kazakhstan for $15 million will have a economic interest of 31 percent taking account of Asianet’s earn out.
Both operating entities will be owned via a joint venture holding company incorporated in the Netherlands. In addition, Tele2 will have the authority to dismiss any employee.
