Kazakhstan’s Kcell is planning to list about a quarter of its equity for up to £500 million in London, according to a report in the Financial Times.
The largest mobile-phone operator in Kazakhstan, Kcell (Almaty, Kazakhstan) is majority owned by Scandinavian telecoms group TeliaSonera, which paid $1.5 billion for its stake at the end of 2011 – some 4.6 times Kcell’s projected 2011 earnings before interest, tax, depreciation and amortisation (EBITDA).
TeliaSonera (Stockholm, Sweden) reportedly agreed to sell 25% of the company in an initial public offering as part of the arrangement.
A smaller stake is to be offered on the Kazakhstan stock exchange to satisfy Kazakh authorities, who want local investors to be more involved in Kazakh companies.
According to the FT, Kcell is waiting to see what happens with the London listing of Russia’s MegaFon, which has been delayed pending the approval of UK regulators, before it presses ahead with its own listing.
Nevertheless, preparations for that process have reportedly been concluded, with Credit Suisse and UBS banks acting as advisers.
Kcell reported revenues of $1.2 billion and EBITDA of $705 million last financial year, and it claims to serve 12.7 million customers, giving it about 50% of the market.
The company is 51% owned by Fintur Holdings, in which TeliaSonera holds a 59% stake, with the other 49% controlled directly by the Scandinavian operator.