Board Approves Relationship Agreement and Services Agreement with TeliaSonera
Almaty, January 30, 2015 - Kcell Joint Stock Company (“Kcell” or the "Company") (LSE, KASE: KCEL), the leading provider of mobile telecommunications services in Kazakhstan by market share in terms of revenue and subscribers, announces that the Kcell Board of Directors has approved the Relationship Agreement and Services Agreement to be entered between Kcell and TeliaSonera AB (TS).
The agreements are designed to regulate the provision of certain corporate services by TS to Kcell, so that Kcell will benefit from TS’s strategic guidance whilst maintaining corporate independence. The agreements establish protocols related to management processes, sharing of information and rendering services to Kcell by TS, an indirect major shareholder through holdings interests in Sonera Holding B.V. and Fintur Holdings B.V.
The agreements acknowledge that whilst the views of TS as a major shareholder may be taken into account, Kcell operates and makes decisions through its Board, Chief Executive Officer and other operational bodies, for the benefit of all shareholders and independently of TS at all times.
In addition, Kcell and TS confirm that agreements and transactions with any member of the TS Group, if deemed necessary for Kcell by the management, shall be undertaken on arm’s length terms and on a normal commercial basis.
|Irina Shol||Tel: +7 727 2582755 ext. 1205
|Теl: +7 727 2582755
|Instinctif Partners||Tel: +44 207 457 2020|
|Leonid Fink, Galyna Kulachek, Tony Friend, Kay Larsen|
Kcell provides mobile voice telecommunications services, messaging services, value-added services such as multimedia 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.
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, which represent 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.