#Qatar #Doha #Power International #Mobile Telecom #Kazakhtelecom

Power International Holding's Acquisition Deal

In a significant move towards expanding its telecommunications portfolio, Power International Holding (PIH) has officially completed the acquisition of Mobile Telecom-Service LLP (MTS) from Kazakhtelecom JSC. The deal marks a crucial milestone for PIH, a conglomerate based in Qatar, which previously signed a memorandum of understanding in February 2024, followed by a final purchase agreement in June 2024.

MTS, recognized for its brands Altel and Tele2, stands as a leading telecommunications provider in Kazakhstan, specializing in ultra-fast 5G connectivity. Established in 2004, the company operates more than 140 retail outlets and boasts a workforce of approximately 2,000 employees, making it a pillar of the Kazakh telecom landscape.

The financial aspect of the acquisition was managed by an international consortium led by Citi and QNB, who served as coordinators and main arrangers, with Halyk Bank JSC as a key primary arranger. Other financial institutions that played a crucial role include ICBC Standard Bank Plc, Bank of Bahrain and Kuwait B.S.C, and Commercial Bank International PJSC. The involvement of such esteemed financial entities underscores the strong market confidence in PIH.

Ramez AlKhayyat, CEO of Power International Holding, expressed his optimism regarding the acquisition, stating it plays a vital role in the strategic growth of the company. He emphasized that this transaction aims to enhance the telecommunications and technology sectors by providing innovative solutions tailored to improve digital experiences in Kazakhstan and support the country's digital transformation initiatives.

Abdulla Mubarak Al-Khalifa, Chairman of the QNB Group, highlighted that the strategic financing provided by QNB demonstrates their commitment to supporting key investments in the telecommunications sector and fostering economic growth and innovation in the region. He expressed confidence that the acquisition would foster improved connectivity and thereby contribute to broader economic development.

Ebru Pakcan, head of the Middle East and Africa cluster at Citi, remarked on the transaction, noting the exceptional capabilities of Citi in emerging markets like Kazakhstan and Qatar. This acquisition illustrates the bank’s expertise in structuring loans and acquisition financing necessary for successful outcomes in complex transactions.

Additionally, Eyad Abdulrahim, CFO of PIH Group, reflected on the challenges navigated during this acquisition, stressing the need for close coordination with global partners amid intricate regulatory and financial environments. The financing from leading financial institutions echoed a robust trust in the potential growth of MTS under the banner of PIH, with plans to enhance infrastructure and elevate service quality, particularly through the rollout of 5G technology.

Both George Barakat, CFO of PIH Group, and Ramez AlKhayyat indicated that the deal aligns with PIH's ongoing strategy to diversify its investment streams and broaden its footprint in the rapidly developing telecommunications sector not just in Kazakhstan but potentially in other markets worldwide.

About Power International Holding (PIH)
Power International Holding is a global leader with a diversified portfolio aligned in 14 key sectors, including telecommunications, infrastructure, and professional services. Committed to driving innovation and creating sustainable value across its endeavors, PIH operates alongside over 65,000 professionals across 91 countries and has successfully undertaken more than 1,250 projects globally.

For more information about Power International Holding and its initiatives, visit www.powerholding-intl.com.