/KASE, May 20, 2022/ – Kcell JSC (Almaty), whose securities are officially
listed on Kazakhstan Stock Exchange (KASE), has provided KASE with the
Kcell Joint Stock Company ("Kcell" or the "Company") (KASE: KCEL), one of the
leading provider of mobile telecommunications services in Kazakhstan, announces
that the Annual general meeting of shareholders (AGM) of Kcell JSC held on May
19 of this year decided to postpone the distribution of net income for payment
of the 2021 dividends.
This was proposed by a major shareholder of Kcell JSC - Kazakhtelecom JSC,
which owns 51% of the shares in Kcell. The country's largest telecom operator
referred to the unstable economic situation, currency risks and the need for
Kcell JSC to focus on the capex program. The current unstable economic
situation in the world had a great impact on the current activities of Kcell
JSC. Kcell JSC managed to achieve a rapid recovery of business and continued to
demonstrate growth in key financial indicators, but at the same time, it is now
impossible to exclude new external risks for the Company.
It was, therefore, proposed to postpone the payment of dividends and instruct
the Board of Directors of Kcell JSC to, by 15 September 2022, submit proposals
for the distribution of retained earnings for previous periods based on the
company's performance in the first half of 2022. It was also proposed that the
Company should use the retained funds to invest in new projects, primarily in
social ones: providing broadband access in rural areas, building new base
stations and other infrastructure, as well as improvement of service quality.
The full press release is available on KASE website –