Power International Holding (PIH) closes a landmark transaction to finance the acquisition of 100% of Mobile Telecom - Service LLP (MTS) from Kazakhtelecom JSC

DOHA, Qatar, Jan. 20, 2025 /PRNewswire/ -- Power International Holding (PIH), a globally recognized Qatari-based conglomerate, has officially completed the acquisition of a 100% participatory interest in Mobile Telecom-Service LLP (MTS) from Kazakhtelecom JSC.

This acquisition follows the initial agreement signed on February 14, 2024, in Doha between PIH, Kazakhtelecom, and the sovereign wealth fund Samruk- Kazyna as well as the signing of the definitive sale and purchase agreement on June 4, 2024.

MTS, known for its prominent brands Altel and Tele2, is the country's leading provider of ultrafast 5G connectivity. Established in 2004, MTS employs around 2,000 staff and operates over 140 retail stores. The company offers a comprehensive range of telecommunications and digital services, making it a cornerstone of Kazakhstan's telecommunications landscape.

This financing was led by Citi and QNB as Coordinators, Bookrunners, and Mandated Lead Arrangers, with Halyk Bank JSCas a Mandated Lead Arranger, and ICBC Standard Bank Plc, Bank of Bahrain and Kuwait B.S.C, and Commercial Bank International PJSC  as Arrangers."

Mr. Ramez AlKhayyat President of Power International Holding, commented:  "Power International Holding's telecommunications group is a key component of the Company's strategic growth. Through this acquisition, we aim to significantly contribute to the development of the telecommunications and technology sectors, offering innovative solutions that will enhance the digital experience in Kazakhstan and empower the digital transformation of the country.

He added : "The closing of this transaction is an important step for us and marks the strong trust and confidence that renowned financial institutions have placed in us. With this acquisition, we are poised to further strengthen our expansion strategy, in the telecomunication and digital sector, in several countries of the world."

QNB Group, the largest financial institution in the Middle East and Africa, the leader on the landmark transaction, has played a vital role in leading the conglomerate towards closing the deal. Mr. Abdulla Mubarak Al-Khalifa, QNB Group Chief Executive Officer commented: "We are proud to have played a pivotal role in facilitating the acquisition of Mobile Telecom-Service LLP by Power International Holding. This strategic financing not only underscores QNB's commitment to supporting key investments in the telecommunications sector but also demonstrates our dedication to fostering growth and innovation. We believe that this acquisition will enhance connectivity and drive economic development, aligning with our vision of empowering businesses."

"We are delighted to have led this landmark acquisition financing for PIH in partnership with QNB. The transaction demonstrates Citi's unparalleled capabilities in emerging markets with on ground presence in Qatar and Kazakhstan, our industry expertise with telecom clients globally and Loans & Acquisition Finance structuring expertise to deliver a successful outcome." Ebru Pakcan, Citi Middle East and Africa Cluster and Banking Head stated.

The acquisition inaugurates Power International Holding's expansion in Kazakhstan, achieving the company's active plan to diversify its investment streams.

On this occasion Mr. Eyad Abdulrahim PIH Group Chief Finance and Investment Officer commented:

"This acquisition marks a significant milestone for Power International Holding as we expand into Kazakhstan's rapidly growing telecommunications sector. The deal involved navigating complex regulatory and financial landscapes, requiring extensive collaboration and coordination with global partners. Securing funding through an international syndicate of leading financial institutions was a key part of the process, reflecting strong confidence in the our acquisition's long-term potential. We are committed to using this investment to enhance infrastructure, including the deployment of 5G technology, to improve service quality and delivering advanced communication solutions to meet the evolving needs of Kazakhstan's population"

Mr. George Barakat, PIH Group Chief Treasury Officer, commented: "We are pleased to announce the successful completion of our leveraged buyout acquisition, marking a significant advancement in our strategic growth initiatives. The strong demand and support from both regional and international banks, resulting in an oversubscription of the financing, underscores the market's confidence in our strategic vision. The positive response from the banking sector further reinforces our financial strength and the trust placed in the Group's ability to execute complex transactions.

About Power International Holding:

Power International Holding (PIH) is a premier global enterprise headquartered in Qatar, recognized for its diversified portfolio and strategic contributions across 14 key sectors. With operations spanning Energy and Natural resources , Concessions power and infrastructure, Construction; Healthcare and Professional Services; Real Estate Development; Telecommunications, Media, and Technology; Agriculture and Food Industries; and Lifestyle.

PIH is committed to driving innovation and delivering sustainable value worldwide.

Supported by over 65,000 professionals representing 91 nationalities, PIH has successfully delivered more than 1,250 projects in 19 countries, shaping industries and advancing global development.

Guided by its vision to create a brighter future from Qatar to the world, PIH upholds the highest standards of quality, resilience, and leadership in every endeavor. The group remains dedicated to fostering innovation, developing future leaders, and preserving its legacy of excellence.

For more information, visit www.powerholding-intl.com 

About QNB Group:

QNB Group is one of the leading financial institutions in the Middle East and Africa region and among the most valuable banking brands in the regional market. Present in over 28 countries across Asia, Europe, and Africa, it offers tailored products and services supported by innovation and backed by a team of over 31,000 professionals dedicated to driving banking excellence worldwide.

About Citi:

Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 180 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services. Additional information may be found at www.citigroup.com | X: @Citi | LinkedIn: www.linkedin.com/company/citi | YouTube: www.youtube.com/citi | Facebook: www.facebook.com/citi

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