Kazakhstan’s state provider KT (Kazakhtelecom) is selling a 24% stake in its majority-owned mobile subsidiary Kcell.
KT holds 75% of Kcell, and will offer the 24% holding “to a wide range of investors at open auctions” via the Kazakhstan Stock Exchange (KASE). According to CommsUpdate, the operator aims to attract long-term capital as it seeks to develop its offering, which includes Kcell, fixed-line, and an additional mobile provider Mobile Telecom Service.
The float is also intended to reduce the holdings of public sector entities in the economy in order to encourage investment. KT expects the move to boost Kcell’s market value, although the company emphasised that it will continue to be a majority shareholder in Kcell and will retain the according rights.
Kcell has worked with KT to implement Kazakhstan’s first joint convergent products, with the companies stating that “such synergy will help to achieve the business goals set in Kcell’s new strategy that involve the transformation from classic mobile operator into a fully digital operator with its own strong technological base and IT products development.”