Tele2 in Acquisition of Controlling Stake in Kazakhstan's Third-Largest Mobile Operator

March 17, 2010

Cleary Gottlieb acted for Tele2 AB on its $76 million acquisition of a 51% controlling stake in Kazakhstan’s third-largest mobile operator, Mobile-Telecom Service LLP (NEO), from Kazakhtelecom JSC, the national telecommunications company. The deal was signed on December 14, 2009 and completed on March 17.

Tele2, which already has low-cost operations in Russia, plans to relaunch Kazakh operator NEO within a year, and has agreed to invest a further $51 million to help the operator win a 20% share of the third-largest market in the Commonwealth of Independent States. Tele2 has an option to buy the other 49% of NEO in five years’ time from Asianet Holdings BV, which is part of a well established private investment group.