REG-TeliaSonera AB TeliaSonera Completes Transactions for Mobile Data Growth in Kazakhstan

Fri Dec 28, 2012 11:55am EST

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http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20121228:nBw285340a

STOCKHOLM--(Business Wire)--


The formal conditions to complete the acquisition of the WiMax operations of the
Kazakh Company Alem Communications, from its owner Midas Telecom, and an
indirect minority investment in KazTransCom, through the purchase of shares from
Alatau LLP, have been met. The intention to carry out the transactions was
announced on August 14, and they are expected to complete in early January 2013.


With the acquisition of a WiMax network in six cities TeliaSonera also secures
valuable frequencies in the 2.5/2.6 GHz band, which are important in order to
cater to an anticipated increased demand for mobile data. The frequencies are
compatible for use with mobile data transmission technologies such as 4G. 

Following completion of the transactions, Kcell, TeliaSonera`s subsidiary in
Kazakhstan, will have full access to these businesses on commercial terms. It
already deploys the backbone capacity of KazTransCom's national fibre optic
network, and it has started to prepare for the deployment of the frequencies of
Alem Communications. TeliaSonera intends to transfer to Kcell the WiMax
operations, including frequencies, and its investment in KazTransCom, subject to
satisfaction of certain conditions as disclosed in the Kcell IPO prospectus. 

"I am very pleased that we have been able to finalize these transactions which
are crucial for Kcell`s continued leadership in mobile data. This reaffirms our
strategic commitment to develop mobile technologies and services in Kazakhstan.
The transactions will secure frequencies, as well as further backbone capacity
at competitive prices, for Kcell in the years to come. This is very important
for Kcell`s future competitiveness, as data volumes continue to grow rapidly,"
said Tero Kivisaari, President, Mobility Services and Business Area Eurasia,
TeliaSonera. 

The total value of the transactions is USD 205 million (subject to any post
completion accounting adjustments), of which the Wimax acquisition from Midas
Telecom represents USD 170 million, and the minority investment and option
rights related to KazTransCom represents USD 35 million. Midas Telecom LLP is
owned by Ms. Aigul Nuriyeva and Alatau LLP is owned by Ms. Raushan Sagdiyeva. 

Note: These transactions are described in more detail on pages 57-59 of the
Kcell IPO prospectus dated December 12th 2012 which is available on
www.kcell.kz/en

TeliaSonera AB discloses the information provided herein pursuant to the Swedish
Securities Markets Act and/or the Swedish Financial Instrument Trading Act. The
information was submitted for publication at 5.30 p.m. CET on December 28, 2012.


Forward-Looking Statements Statements made in the press release relating to
future status or circumstances, including future performance and other trend
projections are forward-looking statements. By their nature, forward-looking
statements involve risk and uncertainty because they relate to events and depend
on circumstances that will occur in the future. There can be no assurance that
actual results will not differ materially from those expressed or implied by
these forward-looking statements due to many factors, many of which are outside
the control of TeliaSonera. 

TeliaSonera (STO:TLSN) (HEX:TLS1V) (LSE:TEE) provides network access and
telecommunication services in the Nordic and Baltic countries, the emerging
markets of Eurasia, including Russia and Turkey, and in Spain. TeliaSonera helps
people and companies communicate in an easy, efficient and environmentally
friendly way. Our ambition is to be number one or two in all our markets,
providing the best customer experience, high quality networks and cost efficient
operations. TeliaSonera is also the leading European wholesale provider with a
wholly-owned international carrier network. In 2011, net sales amounted to SEK
104 billion, EBITDA to SEK 36.9 billion and earnings per share to SEK 4.20. The
TeliaSonera share is listed on NASDAQ OMX Stockholm and NASDAQ OMX Helsinki.
Read more at www.teliasonera.com. 

This information was brought to you by Cision http://www.cisionwire.com

TeliaSonera press office + 46-771 77 58 30
press@teliasonera.com
Newsroom (http://www.teliasonera.com/en/newsroom/)
Twitter @TLSN_Media (https://twitter.com/TLSN_Media)

TeliaSonera 

Copyright Business Wire 2012
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