19 Oct 2015 11:30
Administrative sanctions imposed on Kcell JSC
Almaty, 19 October 2015 - Kcell Joint Stock Company ("Kcell" or the "Company") (LSE, KASE: KCEL), the leading provider of mobile telecommunications services in Kazakhstan by market share in terms of revenue and subscribers, brings this information to the attention of its shareholders and investors pursuant to paragraph 1.9 of Article 79 of the Law of the Republic of Kazakhstan On Joint Stock Companies.
The Committee for Regulation of Natural Monopolies and Competition Protection under RK Ministry of National Economy has identified signs of violations of dominant position by the Company, namely the partial restriction of international traffic from Kazakhtelecom during the period between March 2013 and December 2014. In accordance with the order of the Almaty City Specialised Interdistrict Administrative Court, an administrative fine of 5 percent of monopoly gain, or KZT 252,660,251, was imposed on Kcell JSC, without confiscation of monopoly gains, under Article 159 Part 3 of the Administrative Offence Code of the Republic of Kazakhstan.
The order came into force on 16 October 2015. The fine has been paid in full.
Contacts
| |
Investor Relations | |
Irina Shol | Tel: +7 727 2582755, ext. 1002 Investor_relations@kcell.kz |
Media Natalya Eskova |
Tel: +7 727 2582755, ext. 1902 Pressa@kcell.kz |
International media | |
Instinctif Partners | Tel: +44 207 457 2020 |
Kay Larsen, Galyna Kulachek |
Company Overview
Kcell provides mobile voice telecommunications services, messaging services, value-added services such as multimedia and mobile content services, as well as data transmission services including internet access. It has two brands: the Kcell brand, which is targeted primarily at corporate subscribers (including government subscribers), and the Activ brand, which is targeted primarily at mass market subscribers. The Company offers its services through its extensive, high quality network which covers substantially all of the populated territory of Kazakhstan.
In December 2012, Kcell successfully completed its offering of GDR's on the London Stock Exchange and common shares on KASE. The price was set at USD 10.50 per GDR and KZT 1,578.68 per share with each GDR representing one share. The offering consisted of a sale by TeliaSonera of 50 million shares, which represent 25 percent of Kcell's share capital. TeliaSonera holds directly and indirectly 61.9% of the Company's common shares.
Kcell plans to benefit from the significant growth potential for mobile data services in Kazakhstan. The Company intends to continue to invest in the deployment of its 3G network to expand coverage. Kcell aims to maintain its market leadership in terms of revenue and the number of subscribers by offering its products and services at competitive prices, expanding its offering of products and services, maintaining the high quality of its network and enhancing its brand value.