Power International Holding Completes Major Acquisition of Mobile Telecom Service LLP in Kazakhstan

Power International Holding Completes Acquisition of Mobile Telecom-Service LLP

On January 20, 2025, Power International Holding (PIH), a globally recognized conglomerate based in Qatar, officially completed the acquisition of 100% of Mobile Telecom-Service LLP (MTS) from Kazakhtelecom JSC. This historic transaction marks a pivotal moment in PIH's growth strategy, particularly in the dynamic telecommunications sector.

The journey towards this acquisition began with an initial agreement signed on February 14, 2024, in Doha between representatives from PIH, Kazakhtelecom, and the sovereign wealth fund Samruk-Kazyna. This was followed by the definitive sales agreement executed on June 4, 2024. MTS, known for its flagship brands Altel and Tele2, stands as the primary provider of ultra-fast 5G connectivity in Kazakhstan, making it a vital player in the region's telecommunications landscape. Established in 2004, MTS employs around 2,000 individuals and operates over 140 retail stores throughout the country, offering a wide array of digital services and solutions.

The intricate financial structuring of this acquisition was led by Citi and QNB, who acted as coordinators and lead arrangers, while Halyk Bank JSC served as the main mandated lead arranger. Other financial institutions such as ICBC Standard Bank Plc, Bank of Bahrain and Kuwait B.S.C, and Commercial Bank International PJSC also played significant roles in facilitating the transaction.

Ramez AlKhayyat, President of Power International Holding, expressed excitement about the acquisition, stating that telecommunications is a key component of PIH's strategic growth. He highlighted the company's aim to contribute immensely to the technological and digital sectors in Kazakhstan, enhancing the overall digital experience. He also emphasized the strong confidence displayed by reputable financial institutions throughout this process.

The CEO of QNB Group, Abdulla Mubarak Al-Khalifa, underscored how vital their role was in supporting PIH through this landmark acquisition. He stated, "We are proud to have played a fundamental role in facilitating this acquisition, reaffirming our commitment to supporting key investments in telecommunications and fostering economic development. This move aligns with our vision to empower businesses across the region."

Ebru Pakcan, Citi's Director of Banking and Cluster Head for MEA, also highlighted the transaction as a testament to Citi's unmatched capabilities in emerging markets, particularly in Qatar and Kazakhstan. She noted the successful structuring of financing for this crucial acquisition as proof of Citi’s expertise in the telecommunications industry.

This acquisition signals Power International Holding's expansion into the Kazakhstan market, aligning with the company's broader strategy to diversify its investment streams effectively. Eyad Abdulrahim, PIH’s Director of Finance and Investments, acknowledged the significant challenges faced during the negotiations, citing complex regulatory and financial landscapes that necessitated deep collaboration with global partners. He emphasized that financing through an international syndicate of leading financial institutions reflected the high market confidence in the acquisition's long-term potential.

With this strategic investment, PIH aims to enhance MTS's infrastructure, including the deployment of robust 5G technology, ultimately aiming to meet the evolving communication needs of Kazakhstan's population. George Barakat, PIH's Treasury Director, celebrated the successful completion of the acquisition, calling it a significant advancement in their strategic growth initiatives. He reported strong market demand and regional bank support, evident from the oversubscription of financing.

About Power International Holding

Power International Holding (PIH) is a top-tier global enterprise headquartered in Qatar, recognized for its diverse portfolio and strategic contributions across 14 key sectors. With operations spanning energy, healthcare, telecommunications, and many more, PIH is committed to driving innovation and sustainable value globally. Supporting over 65,000 professionals from various nationalities, PIH has successfully executed more than 1,250 projects in 19 countries.

To learn more about PIH's impactful initiatives, visit www.powerholding-intl.com.