Kazakhtelecom announces amicable resolution of arbitration proceedings

01.06.21 13:08
/KASE, June 1, 2021/ – Kazakhtelecom (Nur-Sultan), whose securities are officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE with the following press release dated June 1, 2021: quote In December 2018, JSC Kazakhtelecom acquired 75% of the shares in JSC Kcell pursuant to a Share Purchase Agreement dated December 12, 2018. In September 2019, JSC Kazakhtelecom initiated arbitration proceedings in London Court of International Arbitration based on claims arising out of certain warranties contained in the Share Purchase Agreement. In May 2021, the parties to the arbitration reached a settlement agreement resolving all claims asserted by Kazakhtelecom and in the end of May Kazakhtelecom has been paid an aggregate settlement in the amount of US$22 million and the proceedings will be dismissed. Kuanyshbek Yessekeyev, the Chairman of the Board of JSC Kazakhtelecom stated: "Acquisition of 75% of shares in Kcell had important strategic significance for us, allowing implementation of a number of projects through optimization and integration of networks to ensure high quality of service for all clients. We are pleased that in addition to increasing the operational efficiency of the mobile operator, as is evident from the results achieved so far, Kazakhtelecom has also achieved this positive settlement. In future we also plan to pay great attention to efficiency issues in all aspects of the activity of Kazakhtelecom Group to protect interests of investors, shareholders and other interested parties". unquote The complete press release is available on KASE website: - https://kase.kz/files/emitters/KZTK/kztk_reliz_010621_1.pdf – in Russian; - https://kase.kz/files/emitters/KZTK/kztk_reliz_010621_eng_1.pdf – in English. [2021-06-01]