Kazakhtelecom sells subsidiary to Qatari company for $1.1bn
A Qatari firm is set to acquire a mobile communications subsidiary from the Kazakh national telecommunications operator for $1.1bn.
On Tuesday, the Kazakh government announced that Kazakhtelecom is selling Mobile Telecom Services (MTS) to Qatar’s Power International Holding (PIH).
The announcement was made during a government weekly briefing by the Kazakh Minister of Digital Development, Zhaslan Madiyev, who described this move as an “expansion of investor base by means of attraction of a new name” and enhancing competition .
Madiyev added that PIH “will… be committed to expanding the MTS network”, according to reports.
Qatar’s PIH was founded in 1983 by Moutaz Al Khayyat, the group’s chairman, and Ramez Al Khayyat, the vice-chair, as a second-generation family business organisation.
The Qatar conglomerate, which ranks at number 12 on this year’s Forbes Middle East’s top 100 homegrown businesses list, operates in five different sectors: general contracting, industries & services, agriculture & food industries, real estate and lifestyle.
PIH operates in 19 countries, including Saudi Arabia, Oman, Libya, France, the United Kingdom and Kazakhstan. The group also has plans to expand operations to Mauritania and Malaysia.
Bilateral ties strengthened in February
This latest development follows the signing of several agreements and memoranda of understanding between Qatar and Kazakhstan in February.
The agreements covered a variety of sectors, including information technology, social development, banking, telecommunications, energy, and infrastructure.
During the signing ceremony presided over by Qatar’s Amir Sheikh Tamim bin Hamad Al Thani and President Kassym-Jomart Tokayev of Kazakhstan, PIH signed an initial agreement with Kazakhtelecom to acquire MTS.
Also in February, President Tokayev met with members of the Qatari Shura Council where he pointed out that there are “plenty of opportunities for Qatar to be one of the top 10 largest investors in Kazakhstan in the nearest future”.
The central Asian leader also praised Qatar’s National Vision 2030 manifesto, the country’s rapidly growing economy and “peace-loving” foreign policy.
Qatar and Kazakhstan have enjoyed diplomatic relations since 1993.
