#Qatar #Doha #Kazakhtelecom #Power International Holding #MTS

A Historic Acquisition in the Telecommunications Sector

Power International Holding (PIH), a renowned Qatari conglomerate, has officially completed the acquisition of a 100% stake in Mobile Telecom-Service LLP (MTS) from Kazakhtelecom JSC. This acquisition marks a pivotal moment not only for PIH but also for the telecommunications landscape in Kazakhstan.

The groundwork for this purchase was laid on February 14, 2024, during an agreement signed in Doha between PIH, Kazakhtelecom, and the sovereign wealth fund Samruk-Kazyna. The definitive sale agreement was concluded on June 4, 2024, sealing a deal that has been in the works for a substantial time.

MTS, one of the leading telecommunications providers in Kazakhstan, is known for its flagship brands, Altel and Tele2. Established in 2004, it employs around 2,000 people and operates more than 140 retail outlets throughout the country. MTS is recognized for its ultrafast 5G connectivity services and offers a vast range of telecommunications and digital solutions, making it a cornerstone in Kazakhstan's telecom ecosystem.

The financing for this acquisition was coordinated by Citi and QNB, both serving as the primary arrangers for this significant financial undertaking, alongside Halyk Bank JSC and others. Ramez AlKhayyat, Chairman of PIH, commented on the strategic importance of this acquisition, stating: "Our telecommunications group is essential to the strategic growth of our company. This acquisition enables us to contribute significantly to the telecommunication and technology sectors, enhancing the digital experience in Kazakhstan and promoting the country's digital transformation."

The acquisition highlights the trusted relationship PIH has built with renowned financial institutions, signaling confidence in its future plans. QNB Group, the largest financial institution in the Middle East and Africa, played a vital role in facilitating this transaction. Abdulla Mubarak Al-Khalifa, CEO of QNB Group, expressed pride in supporting PIH’s efforts, underlining the significance of the transaction in strengthening connectivity and stimulating economic growth.

Ebru Pakcan, leading Citi's operations in the Middle East and Africa, emphasized the bank’s unparalleled capabilities in emerging markets, noting the successful collaboration aimed at achieving a positive outcome for the deal.

With this acquisition, PIH is poised to expand its footprint in Kazakhstan, part of its active strategy to diversify its investment streams. Eyad Abdulrahim, CFO of PIH, highlighted the complex regulatory and financial environments navigated during the acquisition process, attributing its success to a highly coordinated effort with international partners. He remarked, "We aim to utilize this investment to enhance infrastructure and deploy 5G technology, improving service quality and providing advanced communication solutions in response to the evolving needs of the Kazakh populace."

George Barakat, Group Treasurer of PIH, celebrated the completion of this acquisition finance, indicating it as a major advancement in the conglomerate's growth initiatives. The over-subscription of this financing by regional and international banks reflects the market's trust in PIH's strategic vision and the strength of its financial standing.

About Power International Holding

Power International Holding is a leading global enterprise headquartered in Qatar, recognized for its diverse portfolio across 14 vital sectors. The company is deeply committed to driving innovation and delivering sustainable value worldwide. With over 65,000 professionals and more than 1,250 projects executed across 19 countries, PIH is shaping industries and promoting global development.

Guided by its vision for a better future, PIH adheres to the highest standards of quality and excellence across its operations, continually fostering innovation and developing future leaders.

For more information, visit Power International Holding.