Power International Holding (PIH), a globally recognized Qatari-based conglomerate, has officially acquired a 100% participatory interest in Mobile Telecom-Service LLP (MTS) from Kazakhtelecom JSC.
This acquisition follows the initial agreement, signed on February 14, 2024, in Doha between PIH, Kazakhtelecom, and the sovereign wealth fund, Samruk-Kazyna, as well as the signing of the definitive sale and purchase agreement on June 4, 2024.
MTS, known for its prominent brands, Altel and Tele2, is the country’s leading provider of ultrafast 5G connectivity. The company offers a comprehensive range of telecommunications and digital services, making it a cornerstone of Kazakhstan’s telecommunications landscape.
With Kazakhstan boasting a population of 20.2 million and high mobile and internet penetration rates, the telecom industry is experiencing robust growth, driven by increasing consumer demand for enhanced connectivity and digital services.
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Moutaz Al-Khayyat, Chairman of PIH, highlighted the strategic significance of this acquisition, noting that, “This acquisition is part of our expansion strategy in the Republic of Kazakhstan. Kazakhstan offers a dynamic investment landscape, marked by its strategic location [and] rich resources, in addition to its commitment to fostering a favorable business climate, alongside an increasingly diversified economy. Kazakhstan’s resilience and openness to innovation make it an attractive destination for sustainable growth and long-term investments.”
Bagdat Mussin, CEO of Kazakhtelecom, added, “This transaction represents a significant milestone in MTS’s strategic evolution and positions it for continued growth and enhanced value creation. I am confident that such a reputable international strategic investor [such] as Power International Holding will make every effort for the further development and prosperity of not only MTS but also the entire mobile telecommunications industry in Kazakhstan, bringing innovation [and] high-quality service standards, strengthening competition and setting new benchmarks.”
Ramez Al-Khayyat, President of PIH, emphasized that, “Power International Holding’s telecommunications group is a key component of the company’s strategic growth. Through this acquisition, we aim to significantly contribute to the development of the telecommunications and technology sectors, offering innovative solutions that will enhance the digital experience in Kazakhstan. At PIH, we are strategically investing in this sector and contemplating several options around the world, positioning ourselves at the forefront of innovation and meeting the growing demand for technology-driven solutions.”
Mikhail Gerchuk, CEO of the Telecom Group at PIH, commented, “Through this acquisition, we aim at improving the customer experience and accelerating the growth of the technology sector in Kazakhstan. Along with PIH’s portfolio that includes AI-powered applications, cloud analytics, robotic process automation, and AI-enhanced customer experiences, we are committed to positioning Tele2 as a telecom and digital champion in Kazakhstan.”
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