Turkish firm applies to buy 75% stake in dormant 3G licensee

19 Mar 2015

Kyrgyzstan’s State Property Management Fund (Fugue) has announced that it has received an application for the acquisition of a 75% stake in state-owned inactive 3G licensee Kyrgyz Mobile Company. The offer is from Istanbul-based Cer Grup Petrol Sanayi Ve Tic Limited Sirketi (Traction Group Oil Industry and Trade Company Ltd), which has now been authorised to participate in the bidding process. Going forward, offers from other eligible applicants will also be considered. The stake sale is expected to lead to the long-awaited privatisation of the would-be operator, which was established in 2011, but has never launched commercially.

According to TeleGeography’s GlobalComms Database, in 2011 the National Communications Agency (NCA) allocated GSM and UMTS frequencies to the newly established Kyrgyz Mobile Company. In February 2012 the government proposed a list of companies to be privatised between 2012 and 2014, which included Kyrgyz Mobile Company, via the sale of a 75% stake. Local and international investors were invited to take part in separate auctions held in August and December 2012, with a starting bid price of KGS152.5 million (USD2.5 million), although no applications were submitted. Yet another auction was scheduled to take place on 19 April 2013, but once again failed to generate any interest.

Kyrgyzstan, Kyrgyz Mobile Company