Tele2 leaves Kazakhstan; Kazakhtelecom sole owner of Tele2-Altel

28 Jun 2019

Swedish telecoms group Tele2 has completed the sale of its entire stake in Kazakh mobile joint venture Tele2-Altel to Kazakhtelecom (KT). The final net proceeds to Tele2 from the sale were USD169 million, whilst the Swedish firm also received full repayment of a shareholder loan of KZT80 billion (USD210 million). State-backed KT now owns 100% of Tele2-Altel – the third largest player in Kazakhstan’s mobile sector – as well as 100% of second-placed operator Kcell, which the telco purchased in December 2018.

TeleGeography’s GlobalComms Database says that on 28 December 2018 Tele2 gave its notice to exercise a put option and sell its 49.00% economic/50.52% voting stake in Tele2-Altel (registered as Mobile Telecom Service LLP, trading under dual Tele2/Altel brands) to KT. The move had been approved in principle by antimonopoly authority KREMZK on 11 December. On 23 May 2019 Tele2 and KT agreed terms of the deal. Tele2’s proceeds from the stake sale reflect a fully diluted economic interest of 31% after deducting former shareholder Asianet’s pre-agreed 18% ‘earn-out’ liability.

Kazakhstan, Kazakhtelecom (KT), Tele2, Tele2-Altel