Tele2 pulls out of Kazakh joint venture

Tele2 pulls out of Kazakh joint venture

Kazakhtelecom is buying Swedish group Tele2 out of their joint venture for a net $169 million.

This total constitutes Tele2’s fee for the sale minus a previous liability related to its holding. The Kazakh unit will also repay a $210 million loan to the Swedish firm. Kazakhstan’s Anti-monopoly Agency has given the green light to the deal, which is expected to close by the end of June.

Tele2 and Kazakhtelecom set up their joint venture – which operates using both the Antel and Tele2 branding – in 2016, and at the end of last year it was the country’s third largest operator, behind Kcell and Beeline (operated by Veon).

In December last year, Kazakhtelecom acquired Telia’s stake in Kcell, which prompted Tele2 to exercise its right to withdraw from the joint venture. The operator has stated that its shareholders will receive the proceeds from the divestment.