Kazakhtelecom finally closes sale of Tele2/Altel

Kazakhtelecom, the largest telecommunication company in Kazakhstan controlled by the Samruk-Kazyna state-owned holding, has announced the finalization of the sale of Mobile Telecom-Service (MTS), which operates under the Tele2/Altel brands, to Qatari Power International Holding (PIH). The company informed the Kazakhstan Stock Exchange (KASE) about the deal.

«Herewith, JSC “Kazakhtelecom» informs that on Jan. 14, 2025, the transaction for the sale of 100% of the participatory interest in the charter capital of Mobile Telecom-Service LLP in favor of PIH Communication LLC was completed,” Nurlan Meirmanov, the company’s chief innovation officer, reported to KASE.   

Last February, Samruk-Kazyna stated that PIH wanted to acquire Mobile Telecom-Service, a company included in the list of entities planned for privatization by 2025. At the time, President Kassym-Jomart Tokayev traveled to Doha, Qatar, where the sales agreement with PIH was signed. The exact contract value is a trade secret, although Kazakhtelecom had previously estimated the mobile network operator at approximately $1.012 billion. Notably, Kazakhstan’s Minister of Digital Development Zhaslan Madiyev disclosed a comparable value in early summer last year.

The finalization process faced constant delays. Initially, the sale was expected to be closed in September 2024, as announced by former Minister of Economy Nurlan Baibazarov. Later, Kazakhtelecom CEO Bagdat Musin assumed that the deal would be completed by the end of 2024, explaining that the delays were due to the lengthy legal procedures undertaken by the foreign investor.