TeliaSonera Makes Investments Worth $205 Million in Kazakhstan
August 14. Dow Jones Newswires
Swedish telecom operator TeliaSonera AB (TLSN.SK) said Tuesday it has entered a deal to acquire the next generation wireless broadband technology, or WiMax, operations of Kazakh company Alem Communications for $170 million, and made a $35 million investment in Kazakhstan network operator KazTransCom.
-The acquisition includes a WiMax network in six major cities, and, in particular, frequencies in the 2.5/2.6 GHz band, which are compatible for use with WiMax and other mobile data transmission technologies.
-In addition, TeliaSonera has reached an in principle agreement with Visor Group, whereby both companies would make an indirect minority investment in KazTransCom.
-TeliaSonera would also have the option to subsequently increase its indirect ownership in KazTransCom.
-KazTransCom is a company listed on the Kazakhstan Stock Exchange and owns, among other businesses, a nationwide fibre optic network in Kazakhstan.
-TeliaSonera’s subsidiary in Kazakhstan, Kcell, has also signed a five year lease agreement for backbone capacity with KazTransCom.
-The total value of the transactions would be $205 million, of which the acquisition related to Alem Communications represents $170 million, and the minority investment and option rights related to KazTransCom would represent $35 million.
-The transactions are subject to, among other conditions, regulatory approvals.
-Shares closed Monday at SEK45.88, valuing the company at SEK198.66 billion.