Tele2 and Kazakhtelecom this week announced that they have agreed to combine their mobile businesses in Kazakhstan. This joint venture(JV) will strengthen the position of both companies in the Kazakhstan market by combining Tele2’s existing operations in Kazakhstan with Kazakhtelecom’s mobile business, Altel. The new business will have more than 5.6 million subscribers and a market share of around 22%.
Going forward, Tele2 and Kazakhtelecom will have, respectively, 51 and 49 percent of the voting rights and a 49 and 51 percent economic interest in the JV, with Tele2 retaining management control. As part of the transaction, Tele2 will purchase Asianet’s existing 49% stake in Tele2 Kazakhstan for an upfront consideration of SEK 128 million (USD 15 million) and a future earn out equivalent to an 18% economic interest of the JV.
Allison Kirkby, President and CEO of Tele2 Grou
This transaction will enable our customers to gain access to Altel’s 4G network and to benefit from its accelerated rollout across Kazakhstan. As a result, both consumers and shareholders will benefit from the synergies generated by the Joint Venture.
Kuanyshbek Yesekeyev, Chairman of the Management Board, Kazakhtelecom
The partnership will also boost the use of advanced technologies such as 4G / LTE and expand the range of services available for customers of Altel and Tele2 Kazakhstan.
