Our opinion:
The announced amount of the deal as a whole is within our expectations. As we noted earlier, given the significant client base of Tele2-Altel JV and a high share of the mobile market in Kazakhstan, the complete consolidation of Tele2-Altel JV will positively affect Kazakhtelecom’s financial performance, promotes operational synergy and will allow diversifying its business asset portfolio. The acquisition of a 49% stake in the JV was taken into account by us in our forecast calculations and does not make any changes in our recommendation to Buy Kazakhtelecom shares with 12M TP 30 130 KZT/share.
