The Company was established as a limited liability partnership (GSM Kazakhstan
ОАОKazakhtelecom LLP) on 1 June 1998 to design, construct and operate a cellular telecommunications network in the Republic of Kazakhstan, using the GSM (Global System for Mobile Communications) standard.
The Company began its commercial operations in 1999 through direct sales and a network of distributors. Prior to 2 February 2012, the Company was owned 51 percent by Fintur Holdings B.V. («Fintur» or «Parent company») and 49 percent by Kazakhtelecom JSC («Kazakhtelecom»). Fintur itself is owned jointly by Sonera Holding B.V. («Sonera») and Turkcell Iletisim Hizmetleri A.S., with holdings of 58.55 percent and 41.45 percent, respectively.
On 2 February 2012, the 49 percent stake in the Company owned by Kazakhtelecom was sold directly to Sonera, a subsidiary of Telia Company.
On 1 July 2012, the General Meeting of the participants of GSM Kazakhstan approved a conversion of the Company from Limited Liability Partnership to Joint Stock Company («the Conversion»), with 200,000,000 common shares to be transferred to Fintur and Sonera in proportion to their ownership percentage. The General Meeting also approved the Company’s change of name to Kcell JSC.
On 27 August 2012, the Ministry of Justice registered the Company as a Joint Stock Company. Under Kazakhstani law, upon the Conversion, retained earnings as of the date of the Conversion became share capital of the Company and ceased to be available for distribution to shareholders.
On 13 December 2012, the Company successfully completed its offering of Global Depositary Receipts on the London Stock Exchange and common shares on the Kazakhstan Stock Exchange. The offering consisted of a sale by Sonera of 50 million shares, which represented 25 percent of the Company’s share capital.
On 4 May 2016, the 24 percent stake in the Company owned by Sonera was sold directly to TeliaSonera Kazakhstan Holding B.V. («TeliaSonera Kazakhstan»), a subsidiary of Telia Company. The Company’s ultimate parent and controlling party is Telia Company.
On 21 December 2018 Kazakhtelecom JSC has completed the purchase of 24 percent Kcell JSC shares owned by TeliaSonera Kazakhstan Holding B.V. and 51 percent shares owned by Fintur Holdings BV (joint venture of telecommunication companies owned by Telia Company (58,55 percent) and Turkcell (41,45 percent), respectively.
Kcell (the Company) shares are listed on the London Stock Exchange (LSE) in the form of global depositary receipts (GDRs) and on the Kazakhstan Stock Exchange (KASE) in the form of common shares, each GDR representing one common share. Each share represents one vote at the General Meeting of shareholders.
Disclosures in the periodic reports that Kcell is required to file shall be in line with high professional standards and be full, fair, accurate, timely and understandable.
Kcell’s written reports include quarterly reports and the Annual Report according to the LSE and KASE rules. Decisions and events of a material nature are always communicated in press releases in accordance with United Kingdom and Kazakhstan regulations for listed companies.
Kcell draws up Annual Reports and Interim Reports in accordance with International Financial Reporting Standards (IFRS). Annual Reports and Interim Reports contain a balance sheet, income statement, statement of cash flows and changes in equity for the Company with the business description and analysis.
Kcell’s financial reports and press releases are posted on this website upon publication.
Keeping shareholders up to date on Kcell’s performance and development is of great importance. At the same time, it is important both financially and environmentally to keep the production and distribution of printed materials at a reasonable level, particularly considering the large number of shareholders. This is why Kcell has a digital Annual Report.