Kazakhtelecom stocks soar after Kairat Satybaldy quit the company

The nephew of former president Nazarbayev has handed over his share of the national operator equity to the government

Kazakhtelecom stocks (KZTK) have risen by 2.13% to $69.24, according to Kazakhstan Stock Exchange (KASE).

On April 12, Skyline Investment Company S.A. and Alatau Capital Investment, both companies controlled by Kairat Satybaldy, nephew of Nursultan Nazarbayev, ex-president of Kazakhstan, handed over 28.8% share of Kazakhtelecom stock to the government. Both deals have been done free of charge.

In turn, the cabinet has officially agreed to sign a gift agreement with Skyline Investment Company S.A. and accept 2,671,481 common stocks or 24.95% of the company’s capital equity. At the same time, Alatau Capital Investment has donated 413,412 common stocks of Kazakhtelecom or 3.85% of its capital equity to the government of Kazakhstan.

On March 13, the Anti-Corruption Agency reported the detention of Kairat Satybaldy. He’s been accused of abuse of power and embezzlement from Kazakhtelecom.

On March 15, it was reported that Satybaldy was arrested for at least two months. Two days after that, law enforcement officials arrested Gulmira, the former spouse of Satybaldy. Allegedly she had played an active role in a corporate raid.

Kazakhtelecom is the national telecommunication operator.  It’s been operating since June 17, 1994. The company owns the National Information Superhighway, a fiber optic telecommunication network in Kazakhstan.

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