Only a 12 months in the past, Jusan Financial institution, one in all Kazakhstan’s largest lenders, purchased a stake in Kcell, one of many largest operators within the nation, throughout a procuring spree in cell telecom ventures. Now, it plans to promote it off.
The most important shareholders of Kcell are Kazakhtelecom (51 p.c), Pioneer Applied sciences (14.87 p.c), Jusan Financial institution (9.08 p.c), and Kazakhstan’s Single Pension Fund (7.07 p.c).
Kazakhtelecom bought a 24 p.c stake to Jusan and Pioneer in September 2021. Pioneer, which is registered in Luxembourg, is related to Jusan as a result of each possession buildings hyperlink again to the Nazarbayev Basis, an establishment established by former President Nursultan Nazarbayev.
The deal was later criticized by lobbyist engaged on behalf of minority shareholders in Kazakhstan, because the announcement of the sale led to a big drop in value within the weeks earlier than the transaction befell.
Kcell was the native model title of Nordic telecoms large TeliaSonera, which infamously owned a number of cell suppliers throughout Central Asia that had been embroiled in corruption scandals. By Rodnik, an funding automobile, TeliaSonera additionally owned KazTransCom, a big telecoms service supplier. In 2018, Telia bought its shares to a bunch of firms stated to be near Timur Kulibayev, one of many nation’s wealthiest businessmen and Nazarbayev’s son-in-law.
In early 2021, Jysan Ventures, an organization affiliated with the financial institution, acquired KazTransCom, in a transfer to speculate into cell monetary companies. (Word: Jusan Financial institution and its affiliated events additionally use the spelling Jysan and Jýsan).
In Could 2022, Jusan paid out round 200 million tenge ($410,000) because of a lawsuit by the Single Pension Fund, which had accused the financial institution of paying lower than market value for the shares on the time of the take care of KazTranscom.
Jusan’s telecom service investments appeared to be a transfer to meet up with Kaspi, the fintech large that listed in London in late 2020.
On September 12, nevertheless, Jusan Financial institution introduced its plan to promote its 9.08 p.c stake in Kcell.
Nurdaulet Aidosov, the financial institution’s chairman, stated that the nation’s sovereign wealth fund Samruk-Kazyna was amongst a couple of events to make a proposal.
“We give [Samruk-Kazyna] our desire, as a result of we recognize their company governance, inner politics, improvement technique and reforms,” Aidosov stated at a press convention. Whereas he declined to touch upon the monetary particulars of the transaction, he assured that “the deal will probably be mutually helpful to the 2 events.”
Samruk-Kazyna already owns 51 p.c in Kazakhtelecom, Kcell’s majority shareholder. Between 2018 and March 2022, Nazarbayev’s nephew Kairat Satybaldy owned a 24 p.c stake in Kazakhtelecom by a Luxembourg-registered firm.
In explaining Satybaldy’s detention in March, the anti-corruption company said that his arrest was linked to alleged embezzlement on the expense of Kazakhtelecom. In April, Satybaldy renounced his Kazakhtelecom belongings, which returned to the palms of the state.
Talking at Jusan’s press convention in September, Aidosov additionally transparently admitted that Kcell is the financial institution’s largest borrower, after it took out a three-year, 60.5 billion tenge ($130 million) mortgage in late 2021. The credit score line amounted to round 29 p.c of Kcell’s belongings.
Days earlier, a Bloomberg report quoted sources near the deal saying that the sale transaction would “reverse the controversial privatization of Kcell that was marred by suspected share value manipulation.”
Although younger on paper, the historical past of Jusan goes again a number of a long time.
Backed by the Nazarbayev Basis, in February 2019 a monetary firm generally known as First Heartland Securities purchased Tsesnabank, then the third-largest lender within the nation. The financial institution’s title was later became Jusan.
In 2018 and early 2019 Tsesnabank had obtained a authorities bailout value in complete $3.4 billion. In March 2019, Nazarbayev unexpectedly resigned after three a long time in energy.
In 2020, Jusan introduced its intention to purchase mid-sized ATF Financial institution, a deal that it closed earlier than the tip of the 12 months.
After rising in measurement whereas being helped by the federal government within the clean-up of its poisonous belongings, Jusan appeared poised to enterprise into a spread of revolutionary companies in Kazakhstan’s monetary sector. The divestment from Kcell appears to be a step again, though the financial institution’s indicators say it continues to penetrate the market.