Information about administrative penalty of Kcell JSC


Almaty, November 21, 2013 - Joint Stock Company Kcell (hereinafter - the Company) (LSE, KASE: KCEL), the leading provider of mobile telecommunications services in Kazakhstan by market share in terms of revenue and subscribers, informs its shareholders and investors about the following information to be disclosed pursuant to paragraph 9 of paragraph 1 of Article 79 of the Law of the Republic of Kazakhstan “On Joint Stock Companies”. Decree of the Specialized Inter-District Administrative Court of Almaty No.3-30200/13 dated 13.11.2013 imposed administrative penalty onto Kcell JSC for an offense under Part 1 of Article 179 of the Code of the Republic of Kazakhstan on Administrative Offences, namely, for presentation of financial statements in depository of financial statements in violation of the due date, in the form of an administrative fine amounting to 500 (five hundred) MCI comprising 865,500 (eight hundred sixty-five thousand five hundred) tenge.

 

Enquires 

Investor Relations 

Irina Shol                                 Tel: +7 727 2582755 ext. 1205

Investor_relations@kcell.kz

 

Media

Natalya Eskova                                    Tel: +7 727 2582755

Pressa@kcell.kz          

 

International Media 

College Hill                              Tel: +44 207 457 2020

Leonid Fink, Tony Friend, Kay Larsen

 

 

Company Overview 

Kcell is the leading provider of mobile telecommunications services in Kazakhstan by market share in terms of revenue and the number of subscribers. It has operated since 1998, and as at 31 December 2012 it had approximately 13.5 million subscribers, representing a market share of 46.9%, as estimated by the Company. Its estimated market share in terms of revenue was 54.5% for the year ended 31 December 2012. 

Kcell provides mobile voice telecommunications services, value-added services such as short message services, multimedia messaging services and mobile content services, as well as data transmission services including internet access. It has two brands: the Kcell brand, which is targeted primarily at corporate subscribers (including government subscribers), and the Activ brand, which is targeted primarily at mass market subscribers. The Company offers its services through its extensive, high quality network which covers substantially all of the populated territory of Kazakhstan. 

Kcell benefits from operating in the fast growing emerging economy of Kazakhstan. In 2012 Kazakhstan’s real GDP growth was 5.5%, according to the Economist Intelligence Unit (EIU). Real GDP per capita has been growing at a compound annual growth rate of 5.9% since 2009 to reach US$13,835 in 2012, according to the EIU. 

In December 2012, Kcell successfully completed its offering of GDR’s on the London Stock Exchange and common shares on KASE. The price was set at USD 10.50 per GDR and KZT 1,578.68 per share with each GDR representing one share.  The offering consisted of a sale by TeliaSonera of 50 million shares, including shares representing 25 percent of Kcell’s share capital. TeliaSonera holds directly and indirectly 61.9% of the Company’s common shares. 

Kcell plans to benefit from the significant growth potential for mobile data services in Kazakhstan. The Company intends to continue to invest in the deployment of its 3G network to expand coverage. Kcell aims to maintain its market leadership in terms of revenue and the number of subscribers by offering its products and services at competitive prices, expanding its offering of products and services, maintaining the high quality of its network and enhancing its brand value.