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TeliaSonera Looking to Sell 25% Stake in Kazakhstan Based KCell

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Kazakhstan based mobile network, Kcell is moving ahead with long standing plans to list its shares on both the local and UK stock exchanges.

Kcell is the leading mobile operator in Kazakhstan by market share in terms of revenue and subscribers, with over 11 million subscriptions as of the end of Q2/2012.

Citing sources close to the deal, the Reuters news agency reported that the company has appointed banks to handle the sale of up to 25% of the company.

Kazakh investment bank Visor Capital is also working on the listing, the Kazakhstan Stock Exchange said in a statement, confirming that Kcell had made an application to list its shares on the local stock market.

Late last year, Teliasonera paid USD1.52 billion for Kazakhtelecom's 49% stake in GSM Kazakhstan, operating under the brand Kcell.

The other 51% stake is owned by Fintur Holdings, which is in turn owned by TeliaSonera (58.55%) and Turkcell (41.45%). Once both steps of the transaction had been completed, TeliaSonera's effective ownership in Kcell rose to 61.74%.

TeliaSonera then also agreed, subject to certain conditions, to sell 25 percent of the shares minus one share in Kcell in an Initial Public Offering (IPO), which was expected to have been carried out sometime this year.

The sale of the 25% stake is expected to raise around USD800 million.

Depending on the share price development after the IPO, TeliaSonera may have to make an additional payment to Kazakhtelecom.

On the web: Reuters

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Tags: kcell  kazakhtelecom  teliasonera  fintur holdings  Kazakhstan