Kazakhtelecom in Agreement to Sell 49% of Shares of GSM Kazakhstan to TeliaSonera

January 24, 2012

Cleary Gottlieb acted as counsel to Kazakhtelecom, the largest telecommunications company in Kazakhstan, in its agreement to sell 49% of the shares in GSM Kazakhstan (operating under the brand Kcell) to TeliaSonera, Europe’s fifth largest telecom operator, for $1.519 billion. The transaction, which is subject to regulatory approvals, is expected to be finalized during the first quarter of 2012.

TeliaSonera has further agreed, subject to certain conditions, to sell 25% of the shares minus one share in Kcell in an initial public offering. The IPO is expected to be completed during 2012. Depending on the share price development after the IPO, TeliaSonera may pay additional consideration to Kazakhtelecom.