Power International Holding Completes Significant Acquisition of MTS in Kazakhstan

Power International Holding's Notable Acquisition of MTS

Power International Holding (PIH), a prominent Qatari conglomerate, has officially finalized its acquisition of a 100% stake in Mobile Telecom-Service LLP (MTS) from Kazakhtelecom JSC. This significant transaction was completed after a series of agreements initiated in early 2024, marking a pivotal moment for PIH as it expands its footprint in the rapidly evolving telecommunications landscape of Kazakhstan.

The formal agreement was established on February 14, 2024, in Doha, including key stakeholders such as Kazakhtelecom and the sovereign wealth fund Samruk-Kazyna. Following this, a definitive sale and purchase agreement was signed on June 4, 2024, paving the way for the successful conclusion of this landmark deal.

MTS stands as a vital player in Kazakhstan's telecom sector, recognized for its trusted brands, Altel and Tele2, and acclaimed for providing ultrafast 5G connectivity. Established in 2004, MTS employs around 2,000 individuals and operates over 140 retail stores. It delivers a broad spectrum of telecommunications and digital services, thereby cementing its status as the leading provider in the region.

The financing of this acquisition was significantly facilitated by Citi and QNB, who acted as Coordinators, Bookrunners, and Mandated Lead Arrangers. Halyk Bank JSC also played an essential role as a Mandated Lead Arranger, further complemented by the contributions of ICBC Standard Bank Plc, Bank of Bahrain and Kuwait B.S.C, and Commercial Bank International PJSC as Arrangers.

Ramez AlKhayyat, President of Power International Holding, expressed, "This acquisition marks a critical juncture for our telecommunications group, integral to our strategic growth. With this move, we aim to substantially bolster the telecommunications and technology sectors in Kazakhstan, offering innovative solutions that will enhance the digital experience for users, while contributing to the country’s digital transformation."

Abdulla Mubarak Al-Khalifa, CEO of QNB Group, noted the bank's pride in facilitating this transaction, emphasizing its commitment to supporting vital investments in telecommunications. He stated, "We believe that this acquisition will enhance connectivity and drive economic growth, aligning with our vision to empower businesses."

Ebru Pakcan from Citi also highlighted the significance of this transaction, asserting its strategic importance in emerging markets, showcasing Citi’s capabilities in successfully structuring deals in telecommunications sectors globally.

With this acquisition, Power International Holding embarks on a journey to expand its telecommunications operations in Kazakhstan, fulfilling its strategic plans to diversify and enhance its investment portfolio. Eyad Abdulrahim, PIH Group Chief Finance and Investment Officer, shared insights regarding the complexities navigated during this transaction, showcasing extensive collaboration with global financial partners. He affirmed, "This acquisition marks a significant milestone, reflecting a strong confidence in the long-term potential of our investment in the telecom sector."

The acquisition represents a crucial step in enhancing 5G infrastructure aimed at elevating service quality to meet the dynamic needs of Kazakhstan's populace. George Barakat, PIH Group Chief Treasury Officer, lauded the successful completion of this deal, noting the strong demand and oversubscription of financing, a beacon of market confidence in PIH’s strategic vision.

About Power International Holding

Based in Qatar, Power International Holding is recognized for its comprehensive portfolio across 14 sectors, including telecommunications, energy, and real estate among others. With a workforce comprised of over 65,000 employees from 91 nationalities, PIH has successfully completed more than 1,250 projects in 19 countries, showcasing its commitment to innovation and sustainable value delivery globally.

For more details about PIH and its extensive portfolio, visit www.powerholding-intl.com.