Sustainable Growth and Long-Term Investments: Power International Holding on the Acquisition of Tele2/Altel

The deal marks the completion of an agreement initially signed in Doha last year. The tripartite document was signed by PIH, JSC "Kazakhtelecom" and JSC "Samruk-Kazyna."

Journalist asked several questions to the new owners and key executives of the company.

How will this deal contribute to Kazakhstan's economic growth and social development in the long term?

Mr. Moutaz Al Khayyat, Chairman of Power International Holding, commented:

"This acquisition highlights the importance of Kazakhstan and Central Asia within our regional investment strategy. We are confident that infrastructure development and the implementation of innovative technologies in these countries will not only improve the quality of life but also create new job opportunities thereby accelerating the socio-economic development of the region.

Kazakhstan’s dynamic investment environment—characterized by its strategic location, abundant resources and commitment to fostering a favorable business climate—supports our vision for sustainable growth and long-term investments. Additionally, Kazakhstan's economic diversification and openness to innovation make it an ideal market for PIH as we expand into the telecommunications and digital sectors, driving transformative growth and connectivity."

What were the drivers that guided the decision to focus investments on the telecommunications sector?

Mr. Ramez Al khayyat, President of Power International Holding, stated:

"Power International Holding’s telecommunications division plays a key role in our strategic growth trajectory. This acquisition enables us to actively contribute to the advancement of Kazakhstan's telecommunications and technology sectors by delivering innovative solutions that will elevate the country's digital landscape. PIH is strategically expanding its investments in this sector globally, exploring various opportunities to position ourselves as leaders in innovation and to meet the rising demand for technology-driven solutions."

What opportunities does the integration of the Tele2 and Altel with Power International Holding open up and how will this impact the development of digital technologies and fintech in Kazakhstan?

Mr. Mikhail Gerchuk, CEO of the Telecom Group at Power International Holding, answered: "This acquisition marks a pivotal step in advancing Kazakhstan's telecommunications sector and broadening our technological capabilities. We are confident the integration of the Tele2 and Altel brands with the strategic investment prospects of PIH will unlock significant opportunities for innovation, growth and enhanced customer experiences. Telecommunications is a strategic cornerstone for establishing a robust fintech ecosystem in Kazakhstan. 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. A thriving and competitive telecom industry will be instrumental in driving the country’s digital transformation and shaping its future economic landscape."

The acquisition of Mobile Telecom Service LLP is in line with Power International Holding's vision of enhancing communities through technological solutions. Leveraging its expertise in data analytics, network infrastructure optimization, and digital payment systems PIH is committed to improving customer satisfaction and fostering technological innovation across Kazakhstan. Additionally, Power International Holding owns Power Mind a leading AI solutions provider for enterprises, offering cutting-edge technology in AI-driven applications, cloud analytics, robotic process automation and enhanced AI-powered customer services aimed at boosting efficiency and driving innovation.

“I am proud of the successful completion of PIH’s acquisition of MTS,” said Dr. Ismaeel Makdisi, PIH Group Chief Legal Officer. “This landmark transaction was made possible through the tireless efforts and close collaboration between the PIH team and the Kazakhstan Telecom and Samruk Kazina’s teams, who worked diligently to navigate the legal, regulatory and operational complexities involved. This acquisition represents a transformative moment for the telecom sector in Kazakhstan and reflects PIH’s shared commitment to driving growth and innovation. The completion of this acquisition paves the way for enhanced opportunities and value creation, ensuring a positive impact for all stakeholders involved.»

Considering Tele2/Altel's established leadership in the market, what are the prospects and growth opportunities you anticipate by 2025 through the strategic partnership with Power International Holding?

Mr Aleksandr Babichev, Chairman of the Board of Mobile Telecom Service LLP, commented:

"Having a prominent investor like Power International Holding come on board is a game-changer for Kazakhstan not just for the telecom sector but for the economy as a whole. For the past 30-year company has been at the cutting edge of innovation in Kazakhstan. We were pioneers, introducing all major technologies to the market – from the first mobile network in the country in 1994 to the high-speed 5G mobile internet, which is transforming the way people connect today. We’re proud of our role as trailblazers and leaders in Fixed Wireless Access (FWA) and we’re even prouder to be recognized as one of Kazakhstan’s best employers. But we’re just getting started. There’s huge untapped potential in accelerating regional growth, integrating artificial intelligence and delivering a truly seamless customer experience. By joining Power International Holding, Tele2/Altel becomes part of a large group and gains a reliable investor focused on long-term growth and development of the Telecom Industry. We hope that Tele2/Altel Kazakhstan will serve as the foundation for implementing ambitious plans to develop a telecom group in the region"

Power International Holding (PIH) operates across multiple key sectors globally, including technology, digitization, healthcare, energy and natural resources, concessions, power and infrastructure, construction, tourism, agriculture, food industries, real estate, hospitality, and entertainment. 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 spanning construction, healthcare, education, technology, and more, PIH is dedicated to driving innovation and creating long-term value through sustainable business practices and strategic investments.