OREANDA-NEWS. September 27, 2011. “Kazakhtelecom” JSC and Telia Sonera AB have signed a Memorandum of Understanding (the Memorandum) regarding “Kazakhtelecom” JSC intentions to conduct a conversion into JSC and an IPO of “GSM Kazakhstan Kazakhtelecom” LLP, operating in the Republic of Kazakhstan under the trademarks Kcell, Activ and Vegaline. It is expected that planned IPO will foster the further development and revitalization of the stock market in the Republic of Kazakhstan, reported the press-centre of Kazakhtelecom.

The conditions of the Memorandum envisage the sale of owned by "Kazakhtelecom" JSC's shares in the course of IPO, except for the 24%+1 shares which will be sold to Telia Sonera, or its subsidiary Fintur Holdings B.V., which is currently the shareholder (participant) in “GSM Kazakhstan Kazakhtelecom” LLP. Execution of the terms, contemplated by the Memorandum, is subject to satisfying certain conditions, agreed by the parties.

"In the conditions of intensifying competition on the mobile market, ''Kazakhtelecom" JSC is planning to consentrate, among others, on the development of own mobile segment. Taking into account the forecasts of telecom analysts, "Kazakhtelecom" JSC is already preparing the development next generation telecommunication standards (4G). From this viewpoint, the sale of the minority stake in this operator is a logical step in the realisation of our own mobile strategy. In our opinion, the terms of the Memorandum are mutully beneficial to both parties" -commented Kuanyshbek Yessekeyev, Chairman of the Board of "Kazakhtelecom" JSC.

Brief info on “GSM Kazakhstan Kazakhtelecom” LLP
Currently 51% of participatory interest in “GSM Kazakhstan Kazakhtelecom” LLP is owned by Fintur Holdings b.v., and 49% by "Kazakhtelecom" JSC. Fintur Holdings B.V. is owned by TeliaSonera (58.55%) and Turkcell (41.55%).