Kcell informs about progress in internal investigation
“Almaty, 4th February 2015 – Kcell Joint Stock Company (“Kcell” or the "Company") (LSE, KASE: KCEL), provides a further update on the progress of the investigation initiated by the Board of Directors (the “Board”) as mentioned in the Company’s public announcement on the 29th of September, 2014.
The investigation has concluded that Kcell has formal grounds to file a report with the General Prosecutor’s office of the Republic of Kazakhstan requesting it to commence a criminal investigation into the activities of a number of former employees who allegedly failed to follow the Company’s internal policies and procedures. The Board will report the matter to the relevant criminal authorities. The employees allegedly responsible for these failures are no longer employed by the Company.
There remains no indication that any of the matters under investigation will have any material effect on the Company's balance sheet or on the results of its operations.
|Irina Shol||Tel. +7 727 258 27 55, ext. 1205
|Leonid Fink, Tony Friend, Galyna Kulachek||Tel. +44 207 457 2020|
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