Monday, December 31, 2012
TeliaSonera completes transactions for mobile data growth in Kazakhstan
SWEDEN: The formal conditions to complete the acquisition of the WiMax operations of the Kazakh Co. Alem Communications, from its owner Midas Telecom, and an indirect minority investment in KazTransCom, through the purchase of shares from Alatau LLP, have been met. The intention to carry out the transactions was announced on August 14, and they are expected to complete in early January 2013.
With the acquisition of a WiMax network in six cities TeliaSonera also secures valuable frequencies in the 2.5/2.6 GHz band, which are important in order to cater to an anticipated increased demand for mobile data. The frequencies are compatible for use with mobile data transmission technologies such as 4G.
Following completion of the transactions, Kcell, TeliaSonera’s subsidiary in Kazakhstan, will have full access to these businesses on commercial terms. It already deploys the backbone capacity of KazTransCom's national fibre optic network, and it has started to prepare for the deployment of the frequencies of Alem Communications.
TeliaSonera intends to transfer to Kcell the WiMax operations, including frequencies, and its investment in KazTransCom, subject to satisfaction of certain conditions as disclosed in the Kcell IPO prospectus.
The total value of the transactions is $205 million (subject to any post completion accounting adjustments), of which the Wimax acquisition from Midas Telecom represents $170 million, and the minority investment and option rights related to KazTransCom represents $35 million. Midas Telecom LLP is owned by Ms. Aigul Nuriyeva and Alatau LLP is owned by Ms. Raushan Sagdiyeva.