TeliaSonera has signed an agreement with Kazakhtelecom to acquire its 49 percent in GSM Kazakhstan, operating under the brand Kcell. The purchase price is USD 1.519 billion. The transaction, which is subject to regulatory approvals, is expected to be finalised during the first quarter of 2012. TeliaSonera has further agreed, subject to certain conditions, to sell 25 percent of the shares minus one share in Kcell in an initial public offering. The IPO is expected to be completed during 2012. Depending on the share price development after the IPO, TeliaSonera may have to make an additional payment to Kazakhtelecom. At present, GSM Kazakhstan is owned by Fintur Holdings (51 percent) and Kazakhtelecom (49 percent). Fintur Holdings is owned by TeliaSonera (58.55 percent) and Turkcell (41.45 percent). Once both steps of the transaction have been completed, TeliaSonera's effective ownership in Kcell will be 61.74 percent.
