Qatar’s Power International Holding (PIH) has acquired leading Kazakhstan telco, MTS, in a deal that is set to boost the region’s telecoms sector, drive economic growth, and fuel PIH’s ambitions for expansion and growth.

Qatar-based conglomerate, Power International Holding (PIH), has officially completed the 100% acquisition of Mobile Telecom-Service LLP (MTS) from Kazakhtelecom JSC. The deal inaugurates Power International Holding’s expansion in Kazakhstan, and fits firmly into the company’s plan to diversify its investment streams, boost the region’s telecom sector, and fuel economic growth.

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

The acquisition follows an initial agreement signed in February 2024 in Doha between PIH, Kazakhtelecom, and the Kazakh sovereign wealth fund Samruk- Kazyna. This was followed by the signing of the definitive sale and purchase agreement in June 2024. The deal was financed through a syndicate of banks led by Citi and QNB as coordinators, bookrunners, and mandated lead arrangers (MLAs). Halyk Bank JSCas also served as a mandated lead arranger, while ICBC Standard Bank Plc, Bank of Bahrain and Kuwait B.S.C, and Commercial Bank International PJSC acted as arrangers. On the legal front, Dentons provided comprehensive support, covering English, Kazakh, AIFC, and Qatari law.

With the deal successfully completed, the acquisition of MTS aligns with PIH’s vision for diversification and expansion. Already, the holding company operates across multiple key sectors globally, from energy, technology and digitization to healthcare, hospitality, entertainment, and more. Employing over 65,000 people from 91 nationalities, PIH has successfully delivered over 1,250 projects in 19 countries. The company focuses on empowering its businesses with the resources and support needed for growth and sustainability. With a diverse portfolio, PIH is dedicated to driving innovation and creating long-term value through sustainable business practices and strategic investments.

For Moutaz Al Khayyat, Chairman of Power International Holding, the acquisition highlights the progression of the company’s regional investment strategy. “We are confident that infrastructure development and the implementation of innovative technologies in countries like Kazakhstan will not only improve the quality of life but also create new job opportunities thereby accelerating the socio-economic development of the region,” he says.

Ramez AlKhayyat, President of PIH, builds on the chairman’s words, pointing to the impact that the deal will have on the telecom and digital ecosystems. “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 explains.

Ramez AlKhayyat, President of Power International Holding

Focusing on Power International Holding’s technological capabilites, Mikhail Gerchuk, CEO of the Telecom Group at PIH says that integrating MTS’ Tele2 and Altel brands into its portfolio will unlock significant opportunities for innovation, growth, and enhanced customer experiences. “With PIH’s diverse portfolio-including AI-powered applications, cloud analytics, robotic process automation, and AI-enhanced customer engagement-we are fully committed to positioning Tele2 as a true telecom and digital champion in Kazakhstan,” he affirms.

From technological innovation to economic development, Power International Holding’s acquisition of a key player on Kazakhstan’s telecoms scene promises positive impact for the country and wider region, and marks a significant milestone in PIH’s ambitious plans for expansion, diversification, and continued growth.

https://www.forbesmiddleeast.com/leadership/leaders-insights/a-landmark-telecoms-transaction